Nice S.p.A. has bought 60% of the share capital of FontanaArte S.p.A., a Milan company which has “made history in lighting and furnishings” in Italy and in the world, founded in 1932 by architect Gio Ponti and managed since 1979 by Carlo Guglielmi, the owner of 100% of its share capital.

FontanaArte is a brand that stands for excellence in the lighting systems and furnishing accessories sector, boasting a long history of collaborations with some of the best Italian and international architects and designers and, in recent years, becoming a major player in the contracts segment, having completed technical lighting projects for both indoor and outdoor settings. For Nice, this transaction follows its recent strategy of entering complementary sectors with a view to offer innovative integrated home furnishings solutions.

Nice paid the purchase price of Euro 2,400,000 for its acquisition of 60% of FontanaArte’s share capital. The price was determined on the basis of the company’s expected gross operating margin (Ebitda) for 2010, its current financial debt and the value of the premises where the company’s headquarters are located.

As for the remaining 40% of the share capital held by Carlo Guglielmi, the agreement provides for put & call options from 2014 until 2016.

As of 31 December 2009, FontanaArte had consolidated assets worth approximately Euro 16.4 million, shareholders’ equity of approximately Euro 1.9 million and net financial debt of approximately Euro 18.7 million. Over the same period, FontanaArte generated consolidated revenues of approximately Euro 21.7 million and Ebitda of approximately Euro 1.7 million.

Mauro Gambaro and Massimo Banfi of K Finance acted as FontanaArte’s financial advisor. Stefano Bellavita of Eidos Partners acted as Nice’s financial advisors.

Giuseppe Alemani of Studio Alemani e Associati advised FontanaArte on legal matters, while Alberta Figari of Clifford Chance advised Nice S.p.A..