Italy’s Automotive Sector Drives Surge in Dealmaking

Italian M&A activity has increased 26% by value compared to 2016

Inbound investment has surged in the consumer sector accounting for 50.1% of market share

Italy has brought 15 IPOs to market worth EUR 3.4bn - 2.5x more than 2016

Mergermarket, the leading provider of M&A data and intelligence, has announced that Italian M&A and private equity activity has been strong throughout 2017. With 383 deals worth EUR 51.3bn to date, Italian M&A is up 26% by value in comparison to the same period 2016 (402 deals, EUR 40.7bn). The data was announced at Mergermarket’s 10th Annual Italian M&A and Private Equity Forum held in Milan on 19th October.

Unquote, the private equity specialist, has also reported that the value of Italian buyouts in the year to date has already exceeded that seen in the whole of 2016, with 57 deals worth EUR 5.6bn announced; there is also a strong pipeline through to the end of the year. However, deal value has fallen significantly from EUR 13.5bn seen in 2016 driven by the EUR 3.5bn Pioneer Investments secondary buyout announced at the end of 2016.

This year’s activity has largely been driven by inbound investment, which has reached EUR 35.8bn across 191 deals. This represents a 94% increase by value versus the same period in 2016, which saw 194 such deals worth a total EUR 18.5bn. Consumer has been the most targeted sector by value and the second most by deal count, following 75 deals worth EUR 25.7bn. The sector accounts for a 50.1% market share and a 4.2x increase compared to 2016.

The consumer sector has benefited from local market conditions and the buzz around the automotive and luxury sector, with tyre manufacturer Pirelli’s IPO offering raising EUR 2.6bn on Borsa Italiana, the second largest European IPO this year according to Mergermarket ECM. Italian couture houses Versace and Valentino and bag retailer Furla are all looking to take advantage of the surge in the luxury sector in 2018 according to ECM intelligence. Italy has also brought 15 IPOs to market worth EUR 3.4bn, 2.5x more than the 11 IPOs seen over the whole of 2016.

Giovanni Amodeo, Global Head of Research and Editorial Analytics at Acuris commented:

“The Italian market is seen by foreign investors as very attractive, as also shown by the inbound activity over the last few years. In particular, investors from the US and China have acquired assets worth €16.6bn and €11.4bn respectively since 2015. At the same time, some of the Italian “champions” have grown abroad through some significant deals such as Luxottica’s €24bn merger with French lenses maker Essilor. We expect private equity to continue to grow as shown by the huge number of ongoing processes involving Italian targets.”
Nicola Anzivino, Partner of PwC Deals in Italy, concluded:

"We see a strong pipeline of IPOs for the next 6-9 months and we are very busy sell-side to find strategic and financial partners for medium size companies in Italy. Industrial manufacturing is very active as M&A sector, transaction multiples are very attractive and international investors are aggressively looking for targets in all sectors. We expect this positive Deals environment to last at least until mid of 2018."

Nicola Anzivino, Partner of PwC Deals in Italy, concluded: 

"We see a strong pipeline of IPOs for the next 6-9 months and we are very busy sell-side to find strategic and financial partners for medium size companies in Italy. Industrial manufacturing is very active as M&A sector, transaction multiples are very attractive and international investors are aggressively looking for targets in all sectors. We expect this positive Deals environment to last at least until mid of 2018."

Enrico Giordano, Partner at Chiomenti, said: 

"I am equally quite optimistic, as I just completed the IPO of Pirelli, an Italian company with a brand and a product of the highest range and technology, as a result of large investment in research. It was the largest IPO in Europe so far in 2017 and gave a burst of enthusiasm to the capital markets.

Another positive element for the entry and exit of private equity will come from the new “Italian Brands” segment on the Borsa Italiana, a showcase for Italian companies with high brand visibility, strong competitive positioning, internationalization and profitability. Luxury companies such as Tods, Moncler, Ferragamo and Cucinelli as well as consumer and industrial companies such as Campari, Technogym, Ferrari and Brembo are already present. In addition to Pirelli, Valentino will soon join as well and, hopefully, many more."

Media Enquiries
Olivia Cummins
PR Executive, EMEA
Acuris
E: olivia.cummins@acuris.com
T: +44 (0)20 3741 112

Olivia Cummins PR Executive Acuris
Olivia Cummins PR Executive Acuris

Join My Mergermarket Events

Get exclusive content from our leading M&A and private equity events.

Watch sessions again, download presentations and get exclusive interviews.

Connect with an international community of dealmakers via our event networking app (for attendees only).

Sign Up