Investcorp, the alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, has reached an agreement to sell Italian motorcycle equipment maker Dainese to Carlyle, one of the world's largest private equity companies, for €630 million ($687.4m).
Investcorp acquired Dainese in January 2015 from its founder Lino Dainese. Under the Bahrain-based asset manager’s ownership, Dainese more than doubled its sales to €250m and grew earnings before interest, taxes, depreciation and amortisation (Ebitda) at a double-digit rate on a compounded basis each year, Investcorp said in a statement on Sunday.
“Under our leadership, we facilitated Ebitda growth of more than five times and created a business well positioned for continued success,” Hazem Ben-Gacem, co-chief executive at Investcorp, said.
Established more than four decades ago, Investcorp has grown to become one of the leading alternative asset management companies in the region, investing across asset classes and geographies. The company has been on an acquisition spree during the pandemic to capitalise on lower asset valuations and is bullish on the growth prospects for its portfolio.
Alternative asset managers invest outside public markets including in private equity, private credit, venture capital, hedge funds, commodities, real estate and infrastructure.
Since 2012, Investcorp has invested €1.6 billion in companies across Europe. It bought a majority stake in Italian cybersecurity company HWG earlier this month through Investcorp Technology Partners (ITP), which focuses on technology companies based in Europe.
ITP previously acquired German cybersecurity provider Avira in 2020, which was subsequently sold to NortonLifeLock, according to Investcorp.
Founded in 1972, Dainese is a manufacturer of protective equipment and technical gear for motorcycling and dynamic sports. The company is present across Europe, the Middle East and Africa, Asia-Pacific and the Americas and distributes its products in more than 100 countries, Investcorp said.
“In 2015, we saw the opportunity to transform a strong brand and a product-led organisation into a global platform by professionalising the business, driving organic international expansion and carrying out add-on acquisitions,” Nicola Ferraris, managing director at Investcorp’s European Private Equity Group, said.
Investcorp supported the transformation of Dainese, “which is now in great shape for further international expansion”, Cristiano Silei, chief executive of the Italian company, said.
The successful sale of Dainese follows previous divestments in other Italian brands such as Gucci and Riva. Investcorp’s current Italian portfolio includes CloudCare, Vivaticket and Corneliani, the company said.
Investcorp had $40.4bn in total assets under management as of December 31, including assets managed by third-party managers.
The company aims to more than double its assets under management to $100bn in seven years’ time, from $37.6bn as of June 2021, its executive chairman Mohammed Alardhi told Bloomberg in September.