Following “numerous” unsolicited acquisition offers, The Italian Sea Group is officially seeking bids. Offers need to be either asset deals or injections of capital.
The Italy-based company is in the midst of a restructuring process. The Italian Sea Group has been under insolvency protection since April. It follows the discovery of cost overruns and other financial irregularities in March. Publicly traded, it’s the parent company of Admiral Yachts, Tecnomar, Perini Navi, Picchiotti, NCA Refit, and Celi 1920, the latter a furniture maker.
In a press release for investors, The Italian Sea Group says it has received “numerous unsolicited expressions of interest.” The official bidding process therefore will establish a single framework, with supervision from the judicial commissioners already overseeing its creditor protection. The terms for interested bidders include a confidentiality agreement. Notably, only irrevocable offers will receive consideration.
Additionally, all interested parties must pursue one of two acquisition avenues. Firstly, an asset deal is possible. Specifically, the process letter mentions the shipyards in Carrara and La Spezia, as well as the Viareggio furniture-making site. It also specifies the Admiral, Perini Navi, Picchiotti, and Tecnomar brands, plus the shareholder stakes in Celi 1920 and TISG Turkey. TISG Turkey—formally, TISG Turkey Yat Tersanecilik A.Ş—is a wholly owned company overseeing production at five shipyards in Turkey. Interested parties may specify select business units, select assets, a combination of them, or all of them. Joint bids will be considered as well.
Secondly, a share deal is possible. Under this, the offer would need to recapitalize The Italian Sea Group and restore financial stability to continue operations.
Either way, non-binding offers are due by September 15. Upon review of the bids, The Italian Sea Group will narrow down potential investors for a more thorough due diligence process. Subsequently, irrevocable offers will be due by October 15, with deal signing by October 26.
The Italian Sea Group intends to keep potential bidders and terms of their offers confidential.
Although the company hasn’t revealed which companies previously approached it, fellow superyacht builders have confirmed interest. Sanlorenzo revealed in July that it’s backing a bid from a consortium for all of the brands and shipyards, for instance. It came a few weeks after the Azimut-Benetti Group acknowledged rumors that it would like select unspecified assets. Shortly after Sanlorenzo’s announcement, SRI Group Global, which specializes in mergers, acquisitions, and business turnarounds, submitted a non-binding expression of interest. Similar to Sanlorenzo and its consortium, SRI Group wants to keep the company intact and therefore ensure continuity at its existing sites.
The Italian Sea Group theitalianseagroup.com
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