Information on the target
On May 7, 2019, H.I.G. Europe, the European division of H.I.G. Capital, announced the successful acquisition of Cadica, Tessilgraf, and Bernini, which together form a leading global manufacturer of trim and packaging solutions for the premium and ultra-luxury fashion industry. This newly integrated Group specializes in providing high-quality garment labels, tags, and packaging supplies tailored for top-tier fashion brands. The services offered by the Group are increasingly vital for fashion houses aiming to distinguish their products, ensure authenticity, and enhance the overall customer shopping experience.
The combined expertise of Cadica, Tessilgraf, and Bernini positions the Group as a formidable player in the market, with a presence in over 90 countries and a diverse customer base exceeding 900 clients. The integration of these companies is expected to yield significant synergies, leveraging their shared IT infrastructure, international logistics capabilities, and manufacturing expertise. This strategic consolidation aims to create a robust platform for future acquisitions, further solidifying the Group's status as a premier provider of components for the luxury fashion sector.
Industry overview in the target’s specific country
The Italian fashion industry is renowned globally for its craftsmanship, innovation, and luxury appeal. Italy has long been a leader in fashion design, with a rich heritage that attracts both established and emerging brands. The premium and ultra-luxury segments of the market are particularly competitive, with brands continuously seeking ways to differentiate themselves through unique product offerings and exceptional customer experiences.
In recent years, the demand for high-quality trim and packaging solutions has surged, driven by the increasing importance of branding and product authenticity. Fashion houses are investing in innovative materials and creative designs to enhance their product presentation and customer engagement. This trend has led to a growing need for specialized suppliers who can provide tailored solutions that align with the evolving needs of luxury brands.
Moreover, the global market for luxury goods is projected to continue its upward trajectory, fueled by rising disposable incomes and a growing middle class in emerging markets. As a result, the demand for premium packaging and labeling solutions is expected to expand, presenting significant opportunities for companies operating within this niche. The integration of Cadica, Tessilgraf, and Bernini positions the Group to capitalize on these market dynamics and drive future growth.
The rationale behind the deal The acquisition of Cadica, Tessilgraf, and Bernini by H.I.G. Europe is driven by a strategic vision to create a leading international player in the trim and packaging sector for the lux…