Target Company Information

Lucaprint, a prominent player in the packaging industry, has been operational for over 70 years. The company generates more than one-third of its revenue from international markets, catering to a diverse clientele that includes leading global brands. With a broad portfolio encompassing food, industry, pharmaceuticals, and premium sectors, Lucaprint boasts substantial in-house capabilities at its facilities located in Pianezze (VI) and Caselette (TO), covering a total production area of 20,000 square meters and employing over 170 professionals.

Industry Overview in Italy

The packaging sector in Italy is highly fragmented yet evolving rapidly, driven by increased consumer awareness towards sustainability. The shift in demand from plastic to cardboard packaging is creating new business opportunities. As companies strive to remain competitive, it is becoming increasingly important to possess a robust financial foundation and critical mass to navigate this transition effectively.

In the current year, Lucaprint has successfully executed two mergers and acquisitions (M&A). The acquisition of Officine Grafiche Riunite in April bolstered its offerings in packaging solutions for cosmetic and pharmaceutical products. Subsequently, the July acquisition of Cartotecnica Olimpia reinforced its presence in foreign markets, positioning Lucaprint among the leading European manufacturers of packaging boxes for aluminum foils, parchment paper, and food films. As a result of these strategic moves, the overall revenue of the Lucaprint group has exceeded 30 million euros.

With sustainability at the forefront, the demand for eco-friendly packaging solutions is anticipated to continue its upward trajectory. It is essential for companies in this sector to leverage financial backing and adopt innovative practices to secure their market standing amid these changes.

Rationale Behind the Deal

The investment by FVS Sgr, through its development fund for SMEs (Fondo Sviluppo PMI 2), is primarily aimed at providing growth capital to Lucaprint. The objective is to solidify Lucaprint's leadership position in its sector, facilitating growth through strategic acquisitions in a landscape ripe with M&A opportunities.

This collaboration will enable Lucaprint to hasten its development initiatives and acquisition strategy, fostering expansion in the packaging field, particularly in light of the industry's transition towards more sustainable practices.

Investor Information

FVS Sgr, a significant investor in the private equity space, has successfully completed its sixth investment with the Fondo Sviluppo PMI 2, which has been operational since July 2021. The fund has allocated approximately 65% of its capital across various sectors, including food, logistics, information technology, services, and mechanical industry, focusing on growth and geographical expansion.

The strategic investments by FVS Sgr aim to enhance market positioning internationally, facilitate acquisition processes, and support generational transition projects within businesses. The current investment in Lucaprint aligns with these objectives by targeting a sector that prioritizes environmental sustainability.

View of Dealert

This investment appears to be a strategic move, as FVS Sgr's involvement provides Lucaprint with the necessary financial resources to enhance its market position and explore additional acquisitions in the thriving packaging sector. Given the ongoing demand for sustainable packaging solutions, Lucaprint's proactive approach to M&A could significantly boost its operational capabilities and market presence.

Moreover, Lucaprint's recent acquisitions exemplify its commitment to innovation and expansion. By successfully integrating new capabilities into its operations, the company is poised to address the evolving needs of its diverse customer base effectively.

Looking ahead, the move could be highly beneficial for both Lucaprint and FVS Sgr, as it leverages synergies in sustainable practices and innovative packaging solutions. An emphasis on environmental responsibility not only positions Lucaprint advantageously in a competitive landscape but also aligns with global trends toward sustainability.

In conclusion, this deal is likely to yield favorable outcomes, provided that Lucaprint continues to capitalize on its growth strategies while maintaining a strong focus on sustainability and innovation in its offerings.

View Original Article