EQUITA assisted Safil e GTI

K Finance - Mid-market M&A advisory
SAFIL   GTI
SAFIL - GTI

Südwolle Group, a leading global producer of worsted yarn for weaving, circular and flat knitting in pure wool and wool blends, announced that it has acquired a 100% stake in Safil S.p.A. as well as an 80% stake in Gruppo Tessile Industriale (GTI) S.p.A., both Italian based worsted yarn manufacturers. The shares were acquired from Finsavio S.p.A., a holding company for 100% of Safil shares and 50% of GTI shares, as well as from the founder and CEO of GTI, Alberto Frignani, who currently holds 50% of GTI shares. As a result from this transaction, Mr. Frignani will remain a 20% shareholder in GTI and he will continue to lead GTI as CEO. Alberto and Cesare Savio, the sons of Safil founder Fernando Savio and owners of Finsavio S.p.A., will continue to support the future growth path of Safil as an individual unit under the umbrella of Südwolle Group: CEO Cesare Savio will continue to lead the company and CFO Alberto Savio will continue to advise the company.

K Finance (Clairfield Italy) and Clairfield Germany acted as financial advisors to Safil and GTI.

Both Safil and GTI are established family businesses, amongst the leaders in Italy. With the global reach and the financial strength of Südwolle Group, Safil and GTI will be able to enter their next phase of growth, expanding within and beyond Europe.

In fiscal 2014, Südwolle Group posted revenues of Euro 340 million. With ca. 85% of revenues, the main customers of the group are suppliers to the apparel industry – both fashion and non-fashion, such as work wear. The other ca. 15% of revenues are generated with non-apparel products, such as yarns for seat covers for the automotive, airline, railway and furnishing industry. Safil and GTI form perfect strategic fit with Südwolle Group.

Klaus Steger, CEO of Südwolle Group, said: “Safil and GTI are established players in their respective segments with significant international growth potential that we want to realize together with their experienced management teams. In line with our strategy to focus resources on our spinning businesses, increase our scope of products and expand our geographic reach, both firms are an excellent strategic fit for our business. Our clients will benefit from our group’s enhanced know-how and product offering in the global yarn market as well as our strengthened footprint in Europe and Italy. We look forward to working with Cesare and Alberto Savio and Alberto Frignani who share our commitment to quality as well as modern corporate governance and welcome them together with all Safil and GTI employees to the Südwolle Group.”

Cesare Savio, CEO and Managing Director of Safil, said: “Südwolle Group is an ideal strategic partner for Safil as it will enable our company to increase its global reach and access customers and sourcing facilities within Europe and beyond.”

Alberto Frignani, CEO of GTI, added: “I am convinced that GTI, thanks to its new partner Südwolle Group, will be in an excellent position to develop its unique know-how in natural fibers and its product innovation potential, and I am excited to lead GTI in this new phase of its growth path.”

Südwolle Group has been advised in the transaction by Deloitte Germany (due diligence & legal; Partners: Dr. Markus Niebler, Dr. Michael Fischer, Dr. Michela Pastorelli). Safil and GTI have been advised by K Finance (Clairfield Italy) and Clairfield Germany as financial advisor (Partners: Giuseppe R. Grasso, Albert Schander with Andrea Dubini, Mattia Varriale), by Pedersoli & Associati as legal advisor (Partner Alessandro Marena) and by Deloitte Financial Advisory as advisor for the vendor due diligence (Partner Marco Bastasin).

The transaction in a nutshell

2015 11 Tombstone Safil GTI Sudwolle

Safil and GTI represent a perfect strategic fit for the Südwolle Group

Client:
Safil SpA and GTI SpA
Date:
November 2015
Mandate:
Südwolle Group acquired a 100% stake in Safil SpA and an 80% stake in GTI SpA
Role:
Financial Advisor
Value:
Undisclosed
Typology:
M&A advisory
Advisor:
EQUITA Mid Cap Advisory

The company

Safil, based in Gaglianico in Italy’s Biella province, is a renowned supplier of worsted yarns for knitwear (outwear, underwear, jersey), weaving (apparel and upholstery), hosiery, protection clothing and sportswear and has shown steady growth over the past years. While the company’s main customers are also suppliers to the clothing industry, it traditionally focuses on different, usually more customized segments than Südwolle Group as well as non-clothing segments. With approx. 700 employees and production facilities in Italy and Bulgaria with production space of almost 60,000 sqm, the company has a yearly spinning capacity of ca. 7,000 tons and a cone dyeing capacity of ca. 4,000 tons per year. In 2014 Safil posted revenues of more than Euro 90 million.

GTI, based in Verrone in Italy’s Biella province, develops, manufactures and commercializes worsted and woolen yarns for the weaving and knitwear industries, focusing on small productions of high-end yarns for suppliers to the luxury fashion industry. GTI has approx. 50 employees, a yearly spinning capacity of ca. 200 tons and production space of ca. 5,500 sqm. In 2014 GTI posted revenues of more than Euro 10 million.