TIKEHAU CAPITAL ENTERS BRANDART TO ACCELERATE ITS GLOBAL EXPANSION PROJECT

Tikehau Capital, a global alternative asset manager, announces that it has acquired on behalf of its clients a 25% stake in the share capital of Brandart (the “Group”), one of the world's largest providers of packaging, merchandising and display procurement solutions for the main high-end consumer brands. Maurizio Sedgh, founder and CEO of Brandart, will retain control of the Group while Tikehau Capital will provide its strategic support to further accelerate the growth of Brandart's core business and its expansion into new markets, with the aim of developing a one-stop -shop for packaging and visual merchandising solutions, keeping sustainability and innovation at the center of the Group's offer.

Brandart, headquartered in Busto Arsizio, operates globally with offices in Milan, Paris, New York and Guangzhou, China. Brandart serves a diverse range of high-end consumer brands in fashion & accessories, eyewear, jewelry & watches, W&S, hi-tech, electronics and automotive.

The Group is a partner of brands in the development, procurement and distribution processes of packaging and merchandising products, displays and window installations.

The Group's differentiated end-to-end model integrates R&D, design, sourcing, sustainable applications, supply chain certifications, stock management, as well as logistics and distribution solutions.

In financial year 2022, Brandart recorded revenues of 215 million euros with an EBITDA margin of 14.8%.

At the heart of Brandart's business model is a constant commitment to sustainability, innovation and the reduction of CO2 emissions along the entire value chain. This commitment is reflected in four fundamental pillars:

1. Recycled and certified raw materials: Brandart actively promotes the use of recycled and certified raw materials, in line with its principles of environmental responsibility;
2. Eco-design: the Group implements eco-design strategies for its products, optimizing the use of raw materials and transport efficiency to minimize environmental impact;
3. High ESG standards: Brandart guarantees rigorous certification of its production processes, respecting strict environmental, social and governance requirements;
4. Efficient logistics: Brandart offers efficient local-to-local logistics solutions, thus reducing CO2 emissions resulting from transport activities.

The transaction was carried out through Tikehau Capital's private equity strategy for decarbonisation*, of which it represents the fourteenth investment to date. Launched in 2018 in partnership with TotalEnergies, the first vintage of this €1.4 billion strategy represents one of the largest private equity funds solely dedicated to supporting businesses driving the decarbonisation of the economy. This investment also constitutes the sixth private equity transaction completed by Tikehau Capital in Italy since 2019, following investments in DoveVivo, Assiteca, EuroGroup, Ecopol and MINT.

“We are very impressed with the results achieved by the Group and appreciate its business model focused on innovation and sustainability, its global footprint and its ability to grow alongside sophisticated and demanding customers. Our partnership with Maurizio Sedgh will be instrumental in helping to further accelerate Brandart's growth, both in its core business and in new segments, with the aim of creating a one-stop-shop for high-end consumer brands, which includes all aspects of retail and secondary packaging and visual merchandising,” commented Roberto Quagliuolo, Deputy Head of Private Equity and Co-Head of Italy at Tikehau Capital.

“The entry of Tikehau Capital represents for all of us a recognition, for which we are grateful, of the important efforts made in recent years to consolidate Brandart's positioning towards our customers and partners and expand our global production and logistics network with models innovative and sustainable. I trust that our strategic partnership will contribute to further solid growth over time, always promoting values and solutions that respect the environment, product and system sustainability" , declared Maurizio Sedgh, founder and CEO of Brandart.

Fineurop Soditic and Cornelli Gabelli e Associati advised Brandart, while Tikehau Capital was advised by McKinsey & Company, Deloitte, Gattai, Minoli, Partners and INDEFI.

Brandart

Brandart is an innovation and sourcing hub that supports high-end consumer brands active in different sectors (fashion & accessories, eyewear, jewelry & watches, W&S, hi-tech, electronics and automotive) to improve communication and customer experience thanks to high-end sustainable packaging, displays and visual merchandising solutions in stores and in shop windows. Brandart's business model focuses on end-to-end management of all high-end packaging, merchandising and procurement needs across products and services and offering its customers cost reduction and value optimization. Headquartered in Busto Arsizio, Brandart also has offices in Milan, Paris, New York and Guangzhou (China) and uses a network of production partners and logistics hubs on five continents. The strategic effectiveness of Brandart's business model has been confirmed by the financial results of the last five years. For more information:

Tikehau Capital

A global alternative manager with €41.1 billion of assets under management (as of 30 June 2023), Tikehau Capital has developed a broad range of expertise across four asset classes (private debt, real assets, private equity and capital markets, as well as multi-asset strategies and special opportunities. Leveraging its capital solidity (3.1 billion euros of net assets as of 31 December 2022), the company invests its capital alongside its investors in every strategy. Controlled by its manager together with leading institutional partners, Tikehau Capital is driven by a strong entrepreneurial spirit and has 742 employees (as of 31 December 2022) across its 15 offices in Europe, the Middle East, Asia and North America. Tikehau Capital is listed on the Euronext market (ISIN code: FR0013230612; Ticker: TKO.FP)