Agreement with Faerch Group in the food packaging sector

Milan, November 6th 2020 – Italmobiliare (through its wholly owned company Sirap Gema) and Faerch Group (a Danish company among the European leaders in the food packaging sector) today signed a binding agreement under which the Sirap Group will sell its main assets in Italy, Poland and Spain to the Faerch Group. The deal, representing for both Groups the best option in terms of future development and value creation, allows Faerch to enter
strategic markets, strengthening its European leadership position.

The consolidation of a leading player at continental level makes it possible to enhance what the Sirap Group has developed over the years in these countries, also in light of the current situation in which the skills and investments necessary to develop and produce innovative and high quality packaging increasingly involve a commitment to sustainability and the circular economy. In this sense, the Faerch Group is at the forefront through increasing investment and a focus on the PET recycling business.

The deal unlocks the best potential for value creation and it is estimated that the transaction will have a substantially neutral impact with respect to the valuation of the Sirap Group as part of the NAV of Italmobiliare at 30 June 2020, approximately €50 million, net of the financial liabilities.

The Sirap Group will maintain control of the activities in the other sectors and countries where the Group is present (the Petruzalek Group, and operations in France, Germany and the United Kingdom), which generated pro-forma turnover in 2019 of approximately € 140 million.

The closing of the transaction - conditional on obtaining the necessary regulatory and government authorizations - is expected to take place within three months from the signing.

Italmobiliare was assisted by Mediobanca as its financial advisor while the legal side was handled by Studio Gattai Minoli e Agostinelli and the fiscal side by Alonzo Committeri & Partners.

Key economic and financial data