Information on the Target

On April 13, 2022, Quadrivio Group's Private Equity fund acquired a 65% stake in SKA, a leading company in the design and implementation of poultry farming systems. This acquisition was executed through a leveraged buyout (LBO) and marks the sixth investment by the Industry 4.0 Fund, part of Quadrivio Group, which focuses on technological innovation and digital transition for small and medium-sized enterprises (SMEs).

Founded in 1954 in Sandrigo, Vicenza, SKA has become a prominent player in the poultry industry, specializing in the production of equipment and habitats for land-based poultry farming systems. The company also controls Meneghin S.r.l., which produces equipment for rabbit farming. SKA meets high-quality standards and partners with major national and international poultry operators, particularly those involved in organic and sustainable supply chain development.

Industry Overview in Italy

The poultry farming industry in Italy has been experiencing significant growth due to increasing demand for white meat, driven by health-conscious consumers and evolving dietary preferences. This growth presents numerous opportunities for innovation, particularly in sustainable and organic farming practices. As environmental concerns rise, there is a push toward more sustainable farming methods that ensure food safety and animal welfare.

Italy's poultry sector has been quick to adopt cutting-edge technology, enhancing productivity and efficiency. As a consequence, many companies within this industry are integrating Industry 4.0 solutions, which optimize production processes through automation and smart technologies. Over the past few years, there's been a marked increase in investments focused on digital transformation to support this trend.

The Italian government has also been supportive of the poultry sector, implementing various initiatives aimed at boosting local production and exports. This pro-industry environment, combined with consumer trends towards healthier options, creates a promising landscape for companies like SKA. With over 50% of SKA's revenue coming from international markets, the company is well-positioned to expand its reach domestically and abroad.

The Rationale Behind the Deal

The acquisition of SKA aligns with Quadrivio Group's strategy to invest in businesses that demonstrate a commitment to innovation and sustainability. Through this deal, Quadrivio aims to leverage SKA's existing technological advancements to fortify its market position in the burgeoning poultry sector. The reinvestment by entrepreneur Dino Pozzato, who holds a 35% stake in SKA, signifies a robust partnership aimed at accelerating growth while enhancing the management structure.

Moreover, SKA’s integration of Industry 4.0 technologies positions the company as a front-runner in the transformation of the poultry farming landscape. The deal is expected to not only solidify SKA's operational capabilities but also to drive research and development initiatives aimed at creating sustainable farming systems that cater to growing domestic and Eastern European and Asian markets.

Information About the Investor

Quadrivio Group is a renowned investment firm that specializes in private equity and is committed to investing in small and medium-sized enterprises focused on technological innovation and digitalization. With a strong portfolio emphasizing Industry 4.0 sectors, Quadrivio is constantly on the lookout for opportunities that exhibit high growth potential and contribute positively to the industry.

The Industry 4.0 Fund, under Quadrivio Group, has a track record of completing successful investments aimed at modernizing traditional sectors through technology. The firm is dedicated to providing resources and strategic guidance to its portfolio companies to ensure sustainable and profitable growth.

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This acquisition is viewed as a commendable investment move for Quadrivio Group, as SKA possesses a unique position within an expanding poultry market. With its established reputation and expertise in technological implementations, the company is poised to elevate its market presence and capitalize on rising consumer trends towards sustainable poultry production.

The emphasis on enhancing SKA's operational framework through the infusion of Quadrivio’s strategic oversight and resources will likely yield positive returns on investment. The ambitious target of achieving €100 million in revenue within the next five years indicates a robust growth trajectory, contingent on successful market execution.

Furthermore, the continuous global demand for poultry protein sets the stage for potentially lucrative opportunities, further supporting the rationale for Quadrivio's investment. As the company strengthens its focus on digitalization and innovation, it is likely to attract more international clients, thus contributing to its revenue expansion strategy.

Overall, this investment represents a strategic alignment of interests between Quadrivio Group and SKA, promising a forward-looking partnership geared towards success in an industry characterized by significant growth and evolution.

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