European buyout house BC Partners is said to be close to reaching a deal to buy Italian paper manufacturer Fedrigoni from Bain Capital at a valuation of €3bn.
BC Partners is going to reinvest in the company through its latest fund, Reuters reported.
Bain Capital bought into the company for €600m in 2018.
Established in 1888, Febrigoni produces papers for packaging, graphics, brand protection and art. It also produces self-adhesive papers and films for clients in the visual communication and other tailor-made sectors.
BC Partners was said to have fallen well short of its €8.5bn goal for its new flagship buyout fund after struggling to persuade some of its long-term backers to re-up. It was reported in February that it had collected about €5.3bn for Fund XI.
BC Partners reportedly hit the halfway point for Fund XI in October 2020 through a record-breaking first close, but seems to have struggled to push much further beyond that amount.
The firm hauled in €7bn for the final close of its tenth buyout vehicle at the start of 2018, comfortably beating the €6.7bn it raised for Fund IX in 2012.
It has also scored other fundraising successes through the pandemic, with its credit arm closed its Special Opportunities Fund II on $1.2bn, smashing its initial $750m target.
That vehicle attracted a 100% reup from institutional investors in its predecessor fund.
Last month the firm’s real estate unit surged past its target for its European value-add fundraise to hit a roughly €900m final close.
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