Packaging Company Brandart Sells Minority Stake
MILAN — Brandart, a leading packaging procurement company supplying global luxury brands, has sold a 25 percent minority stake to global alternative asset management group Tikehau Capital.
Brandart’s founder and chief executive officer Maurizio Sedgh will retain control of the group, as well as its executive role. Tikehau Capital is expected to enhance Brandart’s footprint globally, while staying true to its core sustainability pledge.
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The Busto Arsizio, Italy-based company provides packaging, visual merchandising solutions, window installations and displays to a roster of high-end brands, serving the luxury industry across categories, from fashion and apparel to eyewear, jewelry, beauty and fragrances to high tech and automotive. It operates through regional offices in Paris, New York, and Guangzhou, China.
Financial details of the deal were not disclosed.
The investment is part of the global alternative asset management group’s “decarbonization strategy” introduced in 2018 in partnership with TotalEnergies and aimed at investing in companies driving the decarbonization economy. Brandart’s marks its sixth transaction in Italy and its 14th deal overall, contributing to a market capitalization of 1.4 billion euros.
“We are impressed by the results achieved by the [Brandart] Group and commend its service business model focused on innovation and sustainability, global footprint and ability to grow alongside sophisticated and demanding clients,” said Roberto Quagliuolo, deputy head of private equity and co-head of Italy at Tikehau Capital. “Our partnership with Maurizio Sedgh will be instrumental in helping Brandart’s further growth, both in its core business and in new segments, with the aim of creating a one-stop-shop for high-end consumer brands for all aspects of retail and secondary packaging and visual merchandising,” he added.
Established in 2000 in the Lombardy region, Brandart is a procurement company with a network of more than 150 production partners operating in different areas of the world. Its eco-commitment is reflected in its multipronged initiatives, from the use of recycled and certified raw materials to the implementation of eco-design strategies. Complying with high ESG standards and requirements, the company has also championed local-to-local logistics solutions aiming to reduce its carbon footprint.
In 2022, Brandart posted sales of 215 million euros up from roughly 135 million euros a year prior. Last year earnings before interest, taxes, depreciation and amortization margin stood at 14.8 percent.
“The entrance of Tikehau Capital represents a recognition of the substantial endeavors undertaken in recent years to establish our market standing, nurture client trust, and expand our global manufacturing and logistics infrastructure together with our sustainable and innovative offering,” said Sedgh. “I trust this strategic partnership kicks off a new era of growth for Brandart, poised to fortify its preeminent market position and strengthen its reputation as a beacon of sustainability in our industry,” he added.
A global asset management group with investments worth 41.1 billion euros as of June 2023, Tikehau Capital counts 742 employees across 15 countries in Europe, the Middle East, Asia and North America. It is listed on the Paris Bourse’s Euronext Paris segment.
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