Antichi Pellettieri SpA

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Presentation transcript:

Antichi Pellettieri SpA Advanced Corporate Finance November 17, 2017 Antichi Pellettieri SpA Case Study Francesco Baldi

Antichi Pellettieri SpA: 2 Business Units AP is one of the main players in the accessible luxury segment within the luxury market The company is organized into 2 main business units: the leather handbags, accessories and footwear division (89.2% of revenues generated in 2005); the apparel division (10.8% of revenues generated in 2005)

Antichi Pellettieri SpA: Geographic Markets Increasing presence in the fast growing markets:

Antichi Pellettieri SpA: Corporate Strategies The key drivers of the 3-year corporate strategy are the following:

Antichi Pellettieri SpA: Business Plan (2006-2008) Profit and Loss Statement (2005 ProForma-2008E) is the following:

Antichi Pellettieri SpA: Valuation (May 2006) 2 valuation methods are used: Relative multiples analysis – comparable companies operating in the luxury segment with a focus on leather goods and footwear; DCF analysis – control method AP has not a pure competitor as it operates in the “accessible luxury” market segment. Comparable companies are selected on the basis of the business model (product categories) and profitability/growth profile Mean EBITDA CAGR = 16.5%

Antichi Pellettieri SpA: Valuation (May 2006) Over the 3-year business plan, AP growth rate is estimated to be higher than the average growth of comparables ( EBITDA CAGR 21% vs. 15%) Geox sets the top end of the range of multiples given its higher growth profile (>30%)

Antichi Pellettieri SpA: Valuation (May 2006) Among others EV/EBITDA multiples as of 2006E for Burberry, Coach and Tod’s are calculated:

Antichi Pellettieri SpA: Valuation (May 2006) GO to Excel File

Antichi Pellettieri SpA: Valuation Range (May 2006) Equity Value: € 337.550.000 € 7.50 per share DCF next...

Antichi Pellettieri SpA: DCF Analysis DCF analysis used as a control method ASSUMPTIONS:

Antichi Pellettieri SpA: DCF Analysis (2) β = 1.3 for AP

EV ranges from € 307 million to € 401 million Antichi Pellettieri SpA: DCF Analysis (3) WACC-growth rate sensitivity analysis: EV ranges from € 307 million to € 401 million

Antichi Pellettieri SpA: Final Listing Price Listing: Milan Stock Exchange – Expandi Segment # of Shares Offered: 14.700.000 shares (33% of post-IPO share capital) Mariella Burani FG ownership of AP will decrease from 88% to 53% Offer Price Range: € 7.15 – € 8.50 FINAL LISTING PRICE (on June 7, 2006) = € 7.77 per share EQUITY VALUE = € 350 million Equity Capital Raised: € 114.219.000