Eco Eridania
Country: Italy
Region: Liguria
Investors: Fondo Italiano di Investimento, Xenon Private Equity
Eco Eridania demonstrates how private equity investment can support companies’ growth and strengthen Italy’s industry. When Fondo Italiano di Investimento first invested in 2011, waste disposal business Eco Eridania was a small company with operations in Liguria and Sardinia with an experienced management team and an ambitious growth plan.
With the support of Fondo Italiano, Eco Eridania grew by acquiring its main competitor and developing an innovative disposal technology. In 2012, Fondo Italiano reinvested alongside Xenon Private Equity to acquire six more competitors, so becoming the market leader in the Central-Northern Italy. Private equity has helped the business increase turnover four-fold, annual volumes of waste managed five-fold and number of employees three-fold. In June 2014, Eco Eridania’s shareholders bought back Fondo Italiano’s stake.
61%
average annual growth in revenues
44%
average annual growth in employee numbers
What did the business need?
Growth capital
Expertise in acquisitions to consolidate a fragmented sector
Development of a new disposal technology
How did private equity backing create lasting value?
Provided growth capital to carry out the company’s growth plan
Helped find a new financial partner to raise further growth capital
Strengthened the management team with experienced CFO and general manager
Assisted the management team in M&A deals
Increased company’s cash flow generation
Supported development of an innovative green disposal technology
What outcomes did private equity investment achieve?
Developed a pollution-free and energy-producing waste disposal plant
Successfully completed and integrated eight acquisitions
Created the market leader in the Central-Northern Italy by revenue and volumes of waste
Grew average sales by 61% annually
Sold to shareholders who will lead the company through further expansion projects
Investors
