With its celebrated brand Elastic Interface, Cytech is the world’s leading manufacturer of sportswear padding specialising in pads for cycling shorts and palms for gloves.
A state-of-the-art, sustainable and hi-tech company, Cytech and its inventions have often changed how we think about cycling apparel; from the invention of the first elastic pad for cycling shorts and the introduction of the revolutionary EIT Palm technology, which paved the way for the creation of gloves with elastic, seamless, three- dimensional palms, to the N3X pad, the first chamois made with 3D-printed padding (first revealed at the recent Eurobike Show). Cytech works with the world’s leading high-end cycling apparel brands, offering innovative, proprietary, cutting-edge solutions. More than 90 per cent of the company’s turnover is generated in foreign markets and its products are sold in over 40 countries worldwide.
The private equity firm PM&Partners SGR acquired a majority stake in Cytech in 2021 and together they have embarked on an ambitious development plan that also includes a growth strategy for external lines.
The first milestone in this plan was reached with the acquisition of Pasasport S.r.l., which was founded by the Pasato family in 1973.
Based in Villa Bartolomea, in the Italian province of Verona (VR), Pasasport specialises in the design and manufacture of clothing accessories (primarily gloves and shoecovers) for third parties predominantly for the sports segment. Made for leading brands, its gloves have protected the hands of fencing champions, F1 drivers, elite cyclists, skiers and horse riders. Over the years, Pasasport has built up a vast wealth of know-how and now operates in a variety of sectors from cycling and running to skiing and sailing with three production plants in Italy, Tunisia and Romania.
Massimo Fregonese, Cytech CEO, said: “I am very pleased that Pasasport has joined the Cytech – Elastic Interface Group because, in addition to the added value created by this acquisition, our two companies share a cultural and business affinity. When we met Federica Pasato and Alberto Santinello, we immediately felt positive about the strategic vision and the opportunity to integrate the two companies. The acquisition of Pasasport strengthens and highlights the value of our market leadership; it enables us to offer our clients a wider range of services and products with greater added value. The business model, commercial and product development synergies, and complementary technological know-how all allows us to accelerate the expansion of Elastic Interface into new markets and diversify our product offering in the cycling sector and across other sports and to strengthen our international presence with production plants on key continents. PM&Partners has played a fundamental role in this project, providing the considerable strategic, operational and financial support that has made the next important chapter possible in the story of Cytech-Elastic Interface.”
Federica Pasato, Chair of the Pasasport Board of Directors, said: “I firmly believe that this collaboration with the Cytech Group is a fantastic opportunity to transform our successful family-run business into a well-established company on the international market. The value of the experience we have gained over the past fifty years can now be taken to the next level and incorporated into a new, more structured hub to deliver excellence and professionalism.”
Alberto Santinello, Pasasport Chief Executive Officer and designer, said: “I am proud that Cytech – Elastic Interface has recognised and appreciated our know-how and our experience and decided to involve Pasasport in its expansion project. The global market pushes us to tackle new challenges, but our team has the creativity, Italian design talent, and ingenuity, for which we are renowned, to triumph every time.”
DETAILS OF THE ACQUISITION
Corus Corporate Finance (“Corus”) assisted Cytech and PM&Partners as financial advisor for the acquisition of a majority stake in Pasasport. The team at Corus was made up of Luca Maccagnani Castelli (managing partner), Giulia Guzzo (director) and Giuseppe Tinaglia (associate).
Gattai Minoli Partners helped Cytech and PM&Partners with their legal matters with the team of Giovan Battista Santangelo (partner), Enrico Silvestri (counsel) and Livia Zaccheo (associate) for all the corporate M&A aspects, and Gianluca Coggiola (partner), Davide Stracquadanio (associate) and Francesco Maria Simonetta (associate) for all banking matters.
The sellers were assisted for all financial and tax matters by the firm of Belluzzo International Partners, with a team led by Equity Partner Ignazio Stefano Barone. The Pasato family was assisted in their legal matters by the SLCLEX international law firm with a team led by Chiara Gandini (senior associate) and Luca Bisconti (associate).
Cytech and PM&Partners were also helped by Deloitte for accounting and tax due diligence, and by Gianesin, Canepari and Partners for business/operations.
The transaction was financed by the Cassa Centrale Banca – Credito Cooperativo Italiano cooperative banking group, assisted by Sherman & Sterling with a team led by Pasquale Bifulco (partner).
The Milano Notai firm helped the parties with all notarial matters.