21 Invest is to acquire a majority stake in Farnese Vini, one of Italy’s leading players in the production, sale and marketing of wines from across the country’s central and southern regions, with a particular focus on Abruzzo, Sicily and Puglia. Founded in the early 1990s, Farnese stands out as a key player in the Italian wine industry thanks to its flexible and innovative business model, based on partnerships with local landowners, which allows the group to control the entire value chain: from the cultivation and harvesting of grapes right through to the sale and marketing of bottled wine. The group realizes about 90% of its sales abroad, catering for over 2,600 clients across the globe, leveraging its extensive commercial network. With revenues in excess of €M 30 in 2012 and an Ebitda of about 20%, the group boasts double digit historical growth trends, which will form a solid basis for further expansion going forward.
21 represented the ideal partner able to provide strategic support for the company’s next phases of growth. The two founders have demonstrated strong commitment to the project by retaining a significant stake in the company. In the large and fragmented global wine market in which ‘Made in Italy’ brings high added value, 21 Invest, together with the founders, will focus on expanding Farnese’s geographic coverage by entering new markets and will further drive organic growth by focusing on quality wines with higher margins and ramping up production in selected regions in the south of Italy. Farnese represents a prime example of ‘Made in Italy’ excellence, with its solid history of growth and high profitability providing for compelling performance prospects going forward.
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