Mandarin Capital exits IMA Group, has first close on Fund II
Mandarin Capital, a Chinese-Italian private equity fund, has sold its 7.57% stake in Bologna-based pharmaceutical machinery business IMA Group for EUR53 million ($69.7 million) and has made first close of its second fund on EUR110.5 million.
The firm sold its stake through an accelerated book building procedure at EUR18.6 per share. According to a release, the firm reaped a 2.2x cash multiple and an IRR of 27% on its original investment.
Mandarin bought a 7% stake in IMA, which was listed on the Star segment of the Milan exchange, in 2009 in a transaction valued at around EUR33 million.
Mandarin purchased around 2.3 million shares at EUR14.50 per share from IMA president Alberto Vacchi, general manager Andrea Malagoli and managers Gianluca Vacchi and Luca Poggi. The acquisition included some bank financing.
Mandarin's second fund - which has a target of EUR1 billion - will target companies involved in healthcare, environmental technology, oil and gas and specialty chemicals. Industrial companies focused on product safety and energy savings are also of interest. The fund will pay EUR30-50 million for minority and majority stakes. Mandarin has completed 10 investments in Chinese and Italian companies from in its EUR328 million ($432 million) debut fund, raised in 2007.
Headquartered in Ozzano dell'Emilia, IMA was founded in 1961. The company designs and manufactures automatic machines for the processing and packaging of pharmaceuticals, cosmetics, tea and coffee. Mandarin followed a buy-and-build strategy for the firm, with a particular focus on the Chinese market.
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