Arcadia SGR S.p.A. (“Arcadia”) announces the fifth investment of the private equity fund Arcadia Small Cap II (“ASC II”), with the acquisition of 60% of EMC Colosio (“Colosio” or ‘the Company”) from the Colosio family, who will retain a 40% equity shareholding in the Company and will support an ambitious development and consolidation plan, also through acquisitions, in the lighting and electronic components industry.
Colosio was founded in the mid-80s by Giovanni Battista Colosio, and is actually managed by his two sons Fabio and Livio, respectively with an industrial and a technical/commercial focus. The company is historically known as a leading producer of lamp holders for traditional lighting and has then been able to turn and adapt its production to the new industry needs and standards driven by the advent of LED technology, also diversifying its end markets in the luxury design segment for residential, commercial and industrial sectors, besides many applications in the smart lighting solutions for roads and cities. With over 70% of export sales, Colosio has established enduring partnerships with its main customers for the co-design and co-development of new products. The Company has over 1,000 active customers, which include the main international brands of design lighting and the most important players in the street lighting market.
As at 31 December 2021 Colosio recorded total revenues of Euro 18.5 mln, with high EBITDA margins, and a strong financial structure, despite the pandemic situation. Thanks to the distinct quality of its products and the high level of service and customisation, Colosio is considered a leader in its sector. Arcadia has been attracted by the importance given by the Company to ESG factors, linked to energy efficiency. The Smart City part of the Internet of Things (IoT) segment, in particular the street lighting, is expected to grow rapidly in the near future, also thanks to the significant public investments in safety and efficiency. The future development plans of the Company also include external growth through acquisitions. In order to support the further development cycle, Arcadia has involved a group of qualified managers, in particular Fausto Lanfranco, Arcadia’s Business Partner, who has been leading important international companies, besides being Chairman of Castello Italia, a portfolio company of ASC II recently sold to Group ARaymond after a strong value creation process. The Business Partner Giorgio Mancarella will be responsible for improving the Company’s planning control and reporting systems.
Alessandro Grassi, Partner of Arcadia, who has led the transaction with the support of Stefano Piras (Investment Manager), and Tristano Pinter (Investment Associate), stated: “Colosio has all the main qualities we look for in the companies we want to invest. In the latest years, the Company has been able to become a reference, also through a significant R&D and business organisation activity. We strongly believe in the project shared with the family, which aims to further develop the Company both through organic growth and M&A activities.”
Livio Colosio, CEO, responsible of commercial and product development, stated: “When looking for a potential partner who could support the further development of the Company, we identified Arcadia as a financial player with a strong industrial approach, which could support the future growth opportunities, and could facilitate the Company expansion through external lines.”.