Platinum Equity Enhances Portfolio with Polli Acquisition

Platinum Equity Completes Polli Acquisition

Platinum Equity is proud to announce the successful acquisition of a majority stake in F.lli Polli S.p.A. This company is well-regarded for its production of pasta condiments and vegetable preserves, providing extensive culinary options to customers across the globe.

About Polli and Its Legacy

Founded in 1872, Polli stands as a historic Italian manufacturer amidst a landscape of modern food production. With a robust line of products that includes pasta sauces, olives, pickles, and condiments, Polli reaches over 50 countries around the world. Notably, it is recognized as one of the primary producers of pesto within the European Union, showcasing its significant impact on the pasta condiment market.

Operations and Production

Polli operates four highly advanced manufacturing plants where it processes more than 130 raw materials, leading to an impressive output of approximately 29,000 tons of vegetables annually. This production capacity translates to over 190 million packages shipped each year, serving a diverse and growing customer base.

The Acquisition Journey

The acquisition of Polli represents a significant milestone for Platinum Equity, with the financial terms remaining confidential. It’s noteworthy that the founding Polli family retains a minority stake in the company, ensuring continuity in leadership and management. CEO Marco Fraccaroli is entrusted with spearheading the operations as they navigate this new chapter.

Vision for Growth

Louis Samson, Co-President of Platinum Equity, expressed his admiration for Polli’s long-standing legacy. He highlighted the importance of building a relationship based on trust and shared vision with the Polli family. Samson emphasized that the firm's operational expertise and resources will support Polli's expansion beyond Italy, targeting growth opportunities in Europe and the United States.

Strategic Investment in Europe

Platinum Equity's investment team, specialized in small-cap acquisitions particularly within the food and beverage sector, took the lead on this initiative. The firm boasts over 20 years of experience investing in Europe and has significantly intensified its activities in the region over the past decade. This track record demonstrates Platinum’s commitment to actively grow in diverse markets.

Operational Strategies and Market Position

By replicating its full spectrum of operational capabilities in Europe, Platinum Equity differentiates itself in the market, ensuring they can effectively support companies like Polli in achieving strategic growth. Samson pointed out that this approach is proving successful as the company remains active and engaged in enhancing its market position.

Other Firms in Platinum Equity’s Portfolio

The acquisition of Polli enriches Platinum Equity's existing portfolio, which includes notable companies like Biscuit International, a manufacturer of private label sweet biscuits, and Fantini Group, a wine producer based in Ortona, Italy. Additionally, the portfolio features providers in diverse areas such as seafood and premium rum, showcasing Platinum's extensive range of interests across industries.

Advisors for the Acquisition

In executing this acquisition, Platinum Equity was guided by a team of seasoned advisors. Deloitte and Clearwater provided crucial financial advisory services, while Latham & Watkins LLP served as the legal advisor, ensuring a smooth transactional process. E&Y also contributed tax counsel relevant to the acquisition.

About Platinum Equity

Founded in 1995 by Tom Gores, Platinum Equity has grown into a renowned global investment firm with over $48 billion in assets under management. The firm is known for its expertise in mergers and acquisitions along with operational improvements, accommodating a variety of sectors. Their commitment to strategic investments has enabled them to complete over 450 acquisitions in their nearly three-decade history, marking them as leaders in the investment landscape.

Frequently Asked Questions

What is the significance of the Polli acquisition for Platinum Equity?

The acquisition enhances Platinum Equity's portfolio, allowing it to expand its operations in the food and beverage sector across Europe and the United States.

What products does Polli specialize in?

Polli specializes in pasta sauces, vegetable preserves, olives, pickles, and condiments, making it a versatile player in the food industry.

Who will lead Polli after the acquisition?

Marco Fraccaroli will continue as CEO and lead the company post-acquisition, ensuring a smooth transition and ongoing operational continuity.

How does Platinum Equity support companies like Polli?

Platinum Equity provides operational expertise, resources, and strategic guidance aimed at fostering growth and expansion in global markets.

What is the history of Polli?

Founded in 1872, Polli has a rich history of producing quality food products, becoming one of the largest pesto producers in the EU.

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