Press Releases
Bear Stearns Merchant Banking in agreement with Opera to invest up to €200 million in Italy
Milan, June 17, 2004 - Opera, the Milan-based private equity firm focused on the Italian lifestyle participated by Bulgari group, has signed an exclusive strategic investment agreement with Bear Stearns Merchant Banking (“BSMB”), one of the leading private equity firms in the United States. Under the agreement, BSMB will designate up to €200 million for investments alongside Opera in Italian companies. Opera and BSMB are targeting Italian companies with revenues in excess of €100 million that operate in sectors related to the Italian lifestyle. The agreement will enable Opera and BSMB to invest jointly in opportunities that require substantial capital commitments in sectors where both Opera and BSMB have complementary industry competencies and geographic reach. Together, both firms will be able to add value to companies focusing on the Italian lifestyle with an unparalleled network of product and industry knowledge, relationships, and capital.
Founded in 1997 by current CEO John Howard, Bear Stearns Merchant Banking manages in excess of $1.7 billion in private equity capital. BSMB has actively invested in the consumer products and retail sectors. Selected investments include: Aéropostale, Inc., Bally Group, CamelBak Group, LLC, New York & Company, Inc. (formerly Lerner Stores), Reddy Ice Group, Inc., Sutton Place Group, LLC (dba Balducci’s) and Vitamin Shoppe Industries Inc.
“We are proud of our association with John Howard, one of the true pioneers of private equity in the United States, and Bear Stearns Merchant Banking,” said Renato Preti, Managing Partner of Opera. “This reaffirms our belief that Italy has many companies with excellent products and well-known brands that need critical mass, capital, management, and networking in order to grow rapidly and expand internationally. Opera can help Italian companies achieve these objectives through its affiliations with Bulgari in Italy and with BSMB in the US, which has historically been the primary export market for Italian lifestyle products.”
“This important cross-border collaboration represents a unique opportunity for us to invest in a geographic market full of interesting opportunities for value creation,” said John Howard, CEO of Bear Stearns Merchant Banking. “We are impressed by the quality of Opera’s deal flow and together we believe we will be able to generate superior investment returns.”
“As co-promoters of and investors in the Opera fund, we are very pleased with this alliance,” said Francesco Trapani, CEO of Bulgari. “Its formation confirms what we have believed all along: investing in the Italian life-style is a winning strategy that is finding significant international attention among important investors. This also substantiates the strength of Opera’s management and the quality of its deal flow. I am convinced that the joint efforts of Opera and Bear Stearns Merchant Banking will lead to successful investments in the Italian life-style sector.”
Opera was advised by New York investment bank Sonenshine Pastor and by law firm Gibson, Dunn & Crutcher LLP.
Bear Stearns Merchant Banking was advised by law firm Kirkland & Ellis LLP.
About Bear Stearns Merchant Banking
Bear Stearns Merchant Banking, the dedicated private equity arm of Bear, Stearns & Co. Inc., invests private equity capital in compelling leveraged buyouts, recapitalizations and growth capital opportunities alongside superior management teams. Bear Stearns Merchant Banking is building its second investment portfolio, investing its current $1.5 billion institutional private equity fund. Since its inception in 1997, Bear Stearns Merchant Banking has been an investor in over 30 portfolio companies across a broad range of industries. In addition, BSMB has a strategic alliance with Giuliani Partners LLC, the firm founded by former New York Mayor Rudolph Giuliani, to invest in sectors related to defense, security and public safety. More information on Bear Stearns Merchant Banking can be found at www.bsmb.com.
About Opera
Founded in 2000 by Bulgari S.p.A and a group of private equity professionals led by Renato Preti, Opera is a private equity firm specializing in the Italian lifestyle. With the recent €90 million first closing of Opera II, the firm manages €315 million in private equity capital from Italian and international institutional investors. Opera has already invested about 160 million euros of the total amount of 225 millions raised by Opera1. Opera’s main investment target is medium- and large-sized companies with high growth potential, operating in sectors related to the Italian lifestyle, that differentiate themselves through strong products and international brands. Opera aims to create value in its portfolio companies as both a financial investor and strategic partner, drawing on the complementary skills and professional experience of its team. In addition to owning 52% of B&B Italia, Opera owns 31% of AG Ferrari Foods, 78% of Itama, 77% of Sector Group, 100% of Bruno Magli and 75% of Unopiu’. www.opera-privatequity.lu
About Bulgari
Bulgari, the contemporary Italian jeweler, is today one of the global players in the luxury market. In 2003, the company posted revenue of €760 million and net profit of €92 million, has a market capitalization of €2.4 billion and relies on a distribution network of over 180 stores in the world’s most exclusive shopping areas. Bulgari has a product portfolio that ranges from jewels and watches to accessories, fragrances and luxury hotels. The Group is controlled by the Bulgari family, which holds 54% of the shares. The remaining 46% is traded on the Milan stock exchange.
Contact:
Bear Stearns Merchant Banking
Russell Sherman 212-272-5219
Opera
Image Building
Giuliana Paoletti, Cristina Fossati, Anna Zaffoni, Sibilla Querci
+39-02-89011300
Bulgari S.p.A.
Francesca Zanoni
+39-06-68810594