PAI Partners ("PAI"), a leading European private equity firm, today announces that it has agreed to acquire Pasubio (the "Company"), a leading specialised provider of premium leather for the automotive industry, from CVC Capital Partners VI ("CVC")
Headquartered in Vicenza, Italy, a renowned leather district, Pasubio is a leading European leather manufacturer, which produces high quality leather products for car interiors serving the premium and luxury automotive segments. Pasubio employs approximately 1,000 people and operates six facilities, where it performs tanning, post-tanning and cutting activities. The Company has plants in Europe and North America as well as a dedicated R&D centre in Italy. Key clients include Porsche, BMW, Bentley, JLR, VW, Rolls Royce, Lamborghini and Maserati.
Under CVC's ownership, Pasubio has experienced significant growth, evolving from a local champion into a multinational industry leader through organic growth and strategic acquisitions to expand its geographic reach and its stellar client base.
PAI will support Pasubio's management team in its future growth plans, which include further consolidating the fragmented global automotive leather market and diversifying the Company's offering into other premium automotive interior materials. PAI will be investing from PAI Europe VII.
Simone Cavalieri, Partner and Head of Italy at PAI Partners, commented: "We are delighted to invest in Pasubio. The Company has a fantastic reputation in its field and is a key European player with significant global potential. We look forward to partnering with the Pretto family to support their exciting growth plans and further strengthen Pasubio's leading position in the high-quality automotive leather market."
Luca Pretto, CEO of Pasubio, added: "We have very much enjoyed our journey with CVC, and we would like to thank them for all their support in helping us transform under their ownership. Over the last few years, we have further professionalised our operations and processes, through a combination of new skills and automation, as well as built-up an unrivalled track record of quality and service for our clients around the world. We are very excited to be partnering with PAI and to benefit from their strong experience going forward, as we look to further grow our position as a global and diversified market leader, both organically and through acquisitions."
Giorgio De Palma, Partner at CVC, commented: "We are very proud of the successful transition of Pasubio from a high-quality family company into a strong industry leader. We thank Luca Pretto and the rest of the management team for their immeasurable contribution to what has been a highly successful partnership over the past years, and we wish them every success in their next phase of growth."
The transaction, which is subject to customary closing conditions, is expected to close in October 2021. The financial details of the transaction were not disclosed.