Springwater Capital increases Fintyre capital, becomes majority shareholder

Springwater Capital has completed the strengthening of the capital structure of the large Italian tyre distributer Fintyre, reports our Italian sister website PneusNews. The transaction completes the process started in June 2020 with the request for an arrangement with creditors presented by Fintyre to the Court of Brescia after the exit of Bain Capital, the main shareholder.

In June 2021, the Court had admitted the company to the composition procedure, based on a continuity plan, prepared by the management of Fintyre and by Springwater, to continue the commercial activity and complete the restructuring. The management of Fintyre and Springwater had asked global tyre manufacturers to support the company in order to guarantee business continuity and supplies to customers, an objective that was possible to achieve thanks to the positive response of many of the primary producers. The plan, presented to the Brescia Court in February 2021, was focused on maximizing creditors’ repayments. Over 280 million euros of debts have been restructured.

In February of this year, following the favourable vote of 80 per cent of creditors, the court approved the arrangement with creditors and the debt restructuring plan. With the homologation decree and the Springwater capital increase, the operation has been completed and the new shareholders can follow up on the recovery plan voted by the creditors. Springwater holds the majority of Fintyre and GSO Capital Partners (Blackstone Group) a minority interest.

The new ownership structure was accompanied by interventions in some business areas and the appointment of a new CEO. Fintyre, in line with the restructuring plan, sold Pneusmarket (Prato Group, Pneusmarca, Rigomma), a tyre retail chain with 40 stores and a turnover in 2021 of 35 million euros. It was also decided to leave the export channel, which is considered non-strategic and low-margin.

Mattia Franchi, for five years at the head of the debt restructuring division of Deloitte Financial Advisory, a role that allowed him to consolidate a high reputation in the industrial and financial community, was appointed chief executive officer.

In the transaction, Fintyre was assisted by Gianni & Origoni and Gattai, Minoli, Partners for the legal part; by Deloitte for the financial part. Springwater was advised by Chiomenti on the legal side and by EY on the financial side.

After almost two years of intense negotiations with a large number of stakeholders, Springwater acquires control of a company which, thanks to the work of the management team and the professionalism of Fintyre employees, has managed to operate through financial difficulties and the effects on the business of the Covid-19 pandemic.

The debt restructuring and the contribution of new financial resources from Springwater allow Fintyre to have a strong balance sheet and financial stability to continue serving the market and strengthen its leadership position in the Italian tyre distribution market.