Multiply Group, an investment holding entity based in Abu Dhabi, has reached an agreement to acquire a majority interest in Italy’s ISEM Packaging Group, a prominent European manufacturer in the packaging industry, thereby marking its foray into a new area of consumer goods.
As part of this agreement, Multiply Group will secure a 60.8% ownership stake in ISEM, while European private equity firm Peninsula Capital, along with other minority stakeholders, will hold the remaining 39.2%.
This deal, which is pending necessary regulatory endorsements, represents Multiply’s sixth global partnership since its debut on the Abu Dhabi Securities Exchange in December 2021.
Multiply Group ventures into packaging
This acquisition indicates Multiply Group’s commitment to entering the packaging sector, enhancing its existing portfolio that already includes businesses in beauty and apparel. The firm stated that this venture is in line with its strategy to develop scalable platforms within fast-growing sectors and demonstrates its desire to expand its international presence.
Founded in 1949 and based in Bologna, Italy, ISEM Group is recognized for its automated packaging solutions and is esteemed for its craftsmanship and adherence to “Made in Italy” design principles.
It counts prestigious brands like LVMH, Kiko, Gucci, L’Oréal, Puig, and Coty Lancaster among its key clientele.
The company produces various products, including rigid boxes, folding cases, silk paper, and dust bags, operating across 11 manufacturing facilities covering more than 100,000 square meters.
“This marks our second European transaction this year as we continue to pursue our global expansion objectives,” stated Samia Bouazza, CEO and Managing Director of Multiply Group. “With anticipated revenue growth of 3x and EBITDA growth of 4x from 2021 to 2024, along with a reliable roster of blue-chip clients and a highly automated industrial setup, we view ISEM Group as an excellent addition to our collection. This acquisition, in collaboration with Peninsula Capital and ISEM’s management, presents us with opportunities to enhance competitive edges, boost value creation, and develop synergies both within the industry and potentially with our beauty and apparel segments.”
Multiply Group and Peninsula Capital emphasized that their collaboration merges Multiply’s long-term investment strategy and platform development experience with Peninsula’s market insight and connections throughout Southern Europe.
Investment by Multiply and Peninsula Capital to facilitate ISEM’s industrial growth
“We take pride in the progress made with ISEM Packaging Group, which has established itself as a leading European packaging player and a preferred partner for top global brands in beauty and fashion,” said Borja Prado, founding partner of Peninsula Capital. “Since our involvement, revenues have experienced a threefold increase due to robust organic growth and strategic acquisitions. Confident about its future, we are happy to reinvest in the group through our latest flagship fund and to partner with Multiply Group – a strategic global investor known for its business scaling capabilities.”
Francesco Pintucci, CEO of ISEM Group, remarked that Multiply’s investment will enhance ISEM’s industrial platform and broaden its international reach. “This significant step aligns with our long-term vision and growth strategy – to develop a leading global industrial group capable of providing comprehensive support to our clients, combining superior quality, innovation, service with a robust commitment to ESG principles,” he noted.
Multiply Group is committed to further expanding its portfolio through strategic global partnerships, while ensuring its investments align with the UAE’s overall economic diversification initiatives.