Deutsche Beteiligungs AG invests in Metalworks Holding
Bergamo/ Frankfurt am Main — Deutsche Beteiligungs AG (DBAG) invests in MTW Holding SpA (“Metalworks”), a group of Italian manufacturers of metal and plastic accessories for the luxury goods industry. Metalworks was founded by Bravo Capital Partners in 2016 and has evolved with a buy-and-build strategy and a successful realignment of its business strategy. In a management buy-out (MBO), DBAG Fund VIII, which is advised by DBAG, will acquire a majority stake in MTW Holding SpA. Luxempart SA, a Luxembourg-listed company and investor in Bravo Capital, and the management team will participate as minority shareholders; the former owners and founders of the company, who are currently involved in MTW Holding, will also become involved again.
DBAG Fund VIII will invest up to 60 million euros, of which 13 million euros are attributable to DBAG. The fund will then hold around 62 percent of the shares in the holding company (DBAG: 14 percent). The closing of the purchase agreement is scheduled for the second quarter. The parties have agreed not to disclose the purchase price.
The current MBO is the seventh investment of DBAG Fund VIII. The fund has been investing in medium-sized companies since mid-2020. Last year, DBAG founded the subsidiary DBAG Italia and opened an office in Milan. Led by Giovanni Revoltella, four local members of the DBAG investment team now work there. With PM Flex (2020) and Itelyum (2021), the DBAG portfolio so far includes two investments in Italian companies.
Under the umbrella of MTW Holding (www.mtwh.it/en, based in Castelli Calepio near Bergamo), three companies operate that complement each other in terms of product range and customer relations: Metalworks, Mengoni & Nassini and FGF. The group designs and produces high-quality fashion accessories for luxury fashion brands. Typical examples are belt buckles, clasps or fittings for handbags, shoes and clothing, but also jewelry or emblems of the iconic brands, which are mainly represented globally. These products are made of metals such as brass, zamak, stainless steel or plastic. Crucial to the company’s success is its ability to turn customers’ design ideas into a finished, high-quality product within a matter of days. Proximity to high-end Italian and French fashion brands, for whom innovation and creativity are particularly important, also plays a major role. At the same time, they expect a reliably high quality of the parts that are processed in their products.
The group employs 250 people at its sites near Bergamo and Florence; it also recently opened a branch in Paris to deepen relations with French luxury goods brands. The Group serves a market that has grown globally by an average of six percent over the past 25 years. 2021 sales were around 60 million euros, 16 percent more than in the pre-Corona year 2019. The market losses caused by the Corona crisis were thus offset within one year.
“The Group has an established position in a resilient market that is growing faster than the national product,” said Tom Alzin, member of the DBAG Management Board, on the occasion of the MBO. “We want to help ensure that the management team can continue the buy-and-build strategy to expand the company’s geographic footprint.” Corporate acquisitions have been a significant part of DBAG’s value enhancement strategies for years. In the past year alone, twelve investments from the DBAG portfolio completed 25 corporate acquisitions.
“Our agenda for the coming years includes not only corporate acquisitions,” said Cesare Luzzana, CEO of Metalworks Holding, “but also organic growth through innovative, sustainable materials for existing and new customers.”
About Deutsche Beteiligungs AG
Deutsche Beteiligungs AG, a listed company, initiates closed-end private equity funds and invests — predominantly alongside DBAG funds — in well-positioned medium-sized companies with potential One focus for many years has been industry. An increasing share of equity investments is accounted for by companies in the growth sectors of broadband telecommunications, IT services and software, and healthcare. The long-term, value-enhancing entrepreneurial investment approach makes DBAG a sought-after investment partner. Assets managed and advised by the DBAG Group amount to 2.5 billion euros.