Vestar Capital Partners to Acquire Fiorucci

Business Wire, Jan 24, 2005

MILAN, Italy & NEW YORK -- Vestar Capital Partners announced that it has signed a definitive agreement to acquire Cesare Fiorucci S.p.A., a leading Italian producer and marketer of cured meats and other gastronomic products, from Cavaliere del Lavoro Ferruccio Fiorucci and his family. The enterprise value of the management buyout transaction is EUR 360 million. In acquiring Fiorucci, Vestar is partnering with Giuseppe Mangano, Fiorucci's Chairman and Chief Executive Officer, and several other members of the company's senior management team, who will invest alongside of Vestar in the transaction. Mr. Fiorucci, whose family founded the company and has continued to own the business for over 150 years, will also reinvest with Vestar in the buyout, and hold an approximately 25% ownership stake. The transaction is expected to close in the first quarter of 2005, subject to receipt of regulatory approval and other customary conditions.

Founded in 1850 as a small pork and cured meats craft workshop, Fiorucci has grown to become the leading Italian company specializing in the production and marketing of cured meats and other branded gastronomic products. With 2004 sales of approximately EUR 360 million, the company targets the premium end of the market, selling its products in both the retail and foodservice segments in over 40 countries worldwide. Headquartered in Pomezia (Rome), Fiorucci employs approximately 1,200 people and runs eight production facilities (seven located in Italy, one in the United States) with company owned subsidiaries in Italy, the US, UK, France and Germany. The Company produces and markets more than 600 products, such as prosciutto crudo (both Parma and San Daniele ham), prosciutto cotto, bacon, Bologna sausage, dried salt beef, cheeses, specialty foodstuff, balsamic vinegar and ready meals. The company's products are marketed under the Fiorucci brand as well as under the Fiordicotto, Suprema, Suillo, Norcinetto and Rostello brand names.

"We are delighted to be backing such an outstanding organization and management team" said Robert Rosner, President of Vestar Capital Partners Europe, based in Paris. "With more than 150 years of industry leadership, Fiorucci represents a very attractive investment opportunity for our firm. Our investment in Fiorucci is perfectly consistent with our firm's targeted investment strategy -- backing solid, long standing companies with leading market positions, run by experienced management teams who have the passion to be both owners and operators of their business". Mr. Rosner added that Vestar is "entering the capital of Fiorucci with a long term investment horizon and will provide Giuseppe Mangano and his management team with substantial capital resources to back the Company's growth plans, which include broad international expansion in markets such as the US, development of new product categories and selected complementary acquisitions."

Giuseppe Mangano, Fiorucci's Chairman and Chief Executive Officer, noted "We welcome our new partners at Vestar to the Fiorucci family. Vestar's presence in both the US and European markets as well as their experience in investing behind leading branded companies, make them the right partner for our management team. It's an excellent match of operating management and global financial resources."

John Magliana, Managing Director of Vestar Capital Partners Europe, added "We are particularly proud to be associated with such a highly respected company and family as Fiorucci. We look forward to a long and successful partnership with the company and are committed to continuing its growth and development consistent with the values and traditions that have marked its wonderful history."

The buyout of Fiorucci represents the most recent acquisition in an active period of growth for Vestar Capital Partners' investment activities in Europe. Other recent investments by Vestar in Europe include FL Selenia and Zanussi Metallurgica (ZML Industries) in Italy, Group OGF in France and SAB Wabco in Sweden. With the acquisition of Fiorucci, Vestar will have invested over $500 million of equity in European buyout transactions in the past three years.

Legal advisors to Vestar Capital Partners were Gianni Origoni Grippo & Partners, Tantalo & Associati and Kirkland & Ellis. Legal advisor to Fiorucci was Grimaldi & Associati.

JP Morgan is assisting Vestar Capital Partners on the financing of the acquisition.

About Vestar Capital Partners:

Vestar Capital Partners is a leading private equity investment firm specializing in management buyouts, recapitalizations and growth capital investments. Vestar's investment strategy is targeted towards middle-market companies in the US and Europe with valuations in the $200 million to $2 billion range. Since the firm's founding in 1988, Vestar has completed fifty investments in companies with a total value in excess of $15 billion. These companies have varied in size and geography and span a broad range of industries. Vestar currently manages funds totalling approximately $4 billion and has offices in New York, Denver, Boston, Paris and Milan.