King & Wood Mallesons (KWM) has advised Capital Dynamics, an independent global private asset management firm, on a co-investment alongside Italian private equity investor PM & Partners in relation to the acquisition of a majority stake in Cosmelux S.r.l. (“Cosmelux” or the “Company”). The founding Zorloni family will retain a 30% ownership stake and maintain a management role at Cosmelux.
Cosmelux is an Italian based global leader in lacquering and UV metallization for the cosmetics packaging market. Capital Dynamics participated in the transaction via the mid-market investment program of its private equity co-investment business. As of Q1 2021 Capital Dynamics had over USD 15 billion of assets under management and advisement employing approximately 160 professionals across 13 offices in Europe, the Middle East, North America and Asia.
The KWM team was led by Milan Corporate Partner Daniele Raynaud with support from London Corporate Partner Barri Mendelson and Tax Partner Samantha Coleman. On the team were Senior Associate Elena Beccegato and Associates Alessandro Morleo in Milan and Jonathan Forrest in London.
Commenting on the transaction, Senior Managing Director of Capital Dynamics, David Smith said:
“We are delighted to join PM & Partners as lead investor in this strong, family-run business. Cosmelux presents a valuable SME co-investment opportunity where the important contribution of professional investors such as PM & Partners can really make a difference.”
Commenting on the co-investment deal, KWM Milan Partner Daniele Raynaud said:
“We were pleased to advise Capital Dynamics on yet another co-investment in the Italian market. The Cosmelux acquisition is one of a number of deals that we have advised Capital Dynamics on and we look forward to many more as we move into more optimal market conditions for deals in our market.”
London Partner Barri Mendelsohn added:
“Our extensive co-investment experience across Europe and internationally perfectly positions us to advise on these types of transactions and we are delighted to be supporting Capital Dynamics on its co-investments in multiple jurisdictions.”
KWM have built a strong portfolio of recent co-investment experience with Capital Dynamics in Italy, advising on transactions including a co-investment into Italian tile manufacturing company, Investintile S.p.A./Italcer S.p.A., a co-investment into SM Pack S.p.A., an Italian packaging company and a co-investment into Casa Vinicola Botter S.p.A. one of the major exporters of Italian wine in the world.