CP ADVISORS ACTED AS THE EXCLUSIVE FINANCIAL ADVISOR OF NEW COSMESY’S SAHREHOLDERS AND THE CONTROLLING SHAREHOLDER OF INUNUP, LEADING PLAYERS ACTIVE IN THE PRODUCTION OF PURFUMES AND OTHER COSMETIC SOLUTIONS, IN THE SALE TO NEW TRENDUP

The creation of New TrendUp marks the combination of three leading Italian companies in the third-party cosmetics sector, Trendcolor, New Cosmesy, and INUNup, creating a hub of excellence with over €60 million in revenue and an EBITDA of over €14 million.

The project was realized thanks to the strategic vision of Orienta Capital Partners, together with Armonia SGR and with the involvement of Square Capital Club, a club deal initiative promoted by Deutsche Bank, alongside with the reinvestment of all the entrepreneurs and investors involved. It creates an integrated and vertically specialized platform in the beauty sector, both in subsequent development phases and through potential further strategic acquisitions.

Trendcolor, with its production facility in Cesate (MI), is a highly innovative company with a strong focus on customized solutions for indie brands. It is a leading manufacturer of a wide range of makeup products (powders, emulsions, anhydrous, etc.), supported by a solid R&D team. The company operates a facility spanning over 12,000 square meters, with an integrated filling and assembly process and a fully automated robotic handling infrastructure. The company generates over €25 million in revenue with €5 million in EBITDA.

Based in Santo Stefano Ticino (MI), New Cosmesy, a perfume contract manufacturer for indie brands, is a market leader in Italy in the creation of niche and premium fragrances, serving the luxury segment, along with premium and accessible luxury brands. With over 30 years of experience, the company offers its customers both contract manufacturing solutions and full-service activities. The company generates over €20 million in turnover with an EBITDA of €5 million.

INUNup is a cosmetics company that produces and packages makeup products. It is a full-service provider that performs all the activities of cosmetic subcontractors and quarter-processors: from formulation to bulk production, from filling to packaging of the finished product, including quality control, laboratory testing, performance analysis, e-commerce, and customer service. INUNup has three locations in the heart of Brianza and generates approximately €20 million in revenue and an EBITDA of €4 million.

CP Advisors, with a team led by managing partner Salvo Mazzotta and managing director Giovanni Nucera, acted as exclusive financial advisor to New Cosmesy's shareholders - Cinque family and Route Capital - and INUNp's controlling shareholder, Ingeco di Alessio Annoni - in the sale and related reinvestment in the business combination project, New TrendUp.

New Cosmesy was also assisted by New Deal Advisors (Guido Pellissero) for financial due diligence, Bonelli Erede (Stefano Brunello) for tax due diligence, and Osborne Clarke (Luca Saraceni and Alessandra Mioni) for legal due diligence and contractual aspects, along with Advant NCTM (Bruno Fondacaro and Mario Bonferroni).

INUNup was assisted by the legal team of GSLA (Galbiati Sacchi Lamandini e Associati law firm – Matteo Cremascoli and Carla Cannavacciuolo) .

Orienta and Trendcolor were assisted by Deloitte for financial and tax due diligence (Marco Bastasin, Giorgio Vasconi), by Orrick for legal due diligence and contractual aspects (Fabio Fauceglia, Eugenio Zupo, Giuseppe Fichera), by Lincoln (Daniele Candiani and Matteo Cupello) for financing, and by Exentially for business due diligence (Marenza Vinci, Martina Grossi, Cristina di Carluccio, Anna Garbagnoli).

Armonia was assisted by E&Y for financial due diligence, OC&C for business due diligence, and by Gianni Origoni for legal aspects.

Leading the industrial integration is Massimiliano Testa, CEO of Trendcolor and now of the entire Group. "Following the success of the Trendcolor transaction, I am proud to complete the project shared with the Orienta team in 2022: creating the first cross-cutting platform in the Made in Italy beauty industry, based on a complete integration of the production chain, from makeup to high-quality artistic perfumery. This model significantly raises the competitive edge in a sector where specialty products will be the primary drivers in the coming years. I look to the future with great enthusiasm, aware that the integration process will require commitment and attention, but certain that it will lay the foundation for a long-term project of absolute success" stated Massimiliano Testa

Mario Gardini, President of Orienta Capital Partners and the new Group, comments: "With Inunup and New Cosmesy, we are further expanding our innovation capacity across the entire supply chain. Following Trendcolor's strong growth, we are investing in two local entrepreneurial leaders with whom we share an industrial vision and development ambition. We thank Armònia and Square Capital for their trust and support in launching this new strategic phase for the Group”.

Alessandro Grimaldi, CEO of Armònia, states: "We are pleased to support Orienta in the implementation of this industrial project, which leverages distinctive skills and consolidated expertise in one of the key sectors of Made in Italy. The creation of an integrated hub of this caliber represents a highly valuable initiative for the entire Italian beauty supply chain."

"The collaboration with Orienta and Armònia represents a significant opportunity to support companies of excellence in their respective sectors, within an industrial project characterized by solidity and long-term vision," states Luca De Bartolomeo, Head of Square Capital. "We are pleased to contribute to such a significant aggregation initiative, which further strengthens the competitive capacity of highly specialized Italian companies in the cosmetics and fragrances supply chain," added Luca Morandi, Director of Square Capital.

Alessio Annoni, Inunup's controlling shareholder, commented: "I am extremely pleased with Inunup's entry into the Group, a circumstance that marks the culmination of a significant growth journey, which has brought me enormous satisfaction, and the beginning of a new adventure. I am certain that Inunup's contribution to the Group will be a source of pride for all Inunup people involved in the project."

Federica Cinque, representing the Cinque family, adds: "Since the entry of Route Capital Partners in 2021, New Cosmesy has embarked on a significant growth path. Today, a new chapter begins, aimed at further expanding the range of services offered, fully respecting the qualitative excellence that we have always strived for”.

“The conception and combination of the Trencolor with New Cosmesy stems from our vision of the industry," say Salvo Mazzotta and Giovanni Nucera of CP Advisors. "Together with our team, we identified significant cross-selling and value creation synergies resulting from the business combination. We thank our clients, the management of the three companies, the investors for their trust and for jointly reinvesting with us in New TrendUp, which represents a unique and fast growing platform in the industry".