Portfolio rationalization plan now complete
Today Telecom Italia Media entered an agreement with Dylog Italia SpA and Palladio Finanziaria SpA regarding the sale of its 100% stake in the Buffetti SpA Group, for an enterprise value of €77.5 million.
The disposal price corresponds to €56.5 million plus the company’s net financial debt at the closing date for a maximum of €21 million (the Buffetti Group’s net financial position as of June 30, 2005 amounted to €18.5 million). The deal will improve Telecom Italia Media’s consolidated net financial position by over €75 million.
The disposal of the Buffetti Group marks the completion of Telecom Italia Media’s portfolio rationalization plan. With this divestment, Telecom Italia Media exits the office product distribution business, which is no longer considered strategic nor offers synergies with its core business. The sale will generate new resources for the development of the media business.
The Buffetti SpA Group is Italy’s leading distributor of office products, services and solutions for professionals, freelancers, artisans and SMEs. The Group launched a restructuring program in 2003 that in 2004 generated significant improvements in revenues achieving the turn around of a negative sales trend, increased profitability, reduced debt and enhanced the brand equity value. Disposal of the Buffetti Group to leading companies in the sector will allow it to build on its recent results.
Scheduled for completion by 2005 year-end, the sale is subject to review by the regulatory authorities.