Ferretti Group
Encyclopedia
Ferretti Group is one of the world leaders in the design, construction and sale of motor yachts with a portfolio of exclusive and prestigious brands of the nautical world: Ferretti Yachts, Ferretti Custom Line, Pershing, Itama, Riva, Bertram, Mochi Craft and CRN. The company initially produced small boats, and in 1971 it produced the first motorsailer
. It now focuses on the powerboat
sector, specializing in luxury motoryachts production. The Group is based in Forlì
and is one of the leading companies in the world of design and construction of luxury motoryachts and sporting boats measuring from 10 to 85 meters long.
The wide range of yachts offered is designed by highly specialized technicians and engineers at Advanced Yacht Technology, one of the most advanced naval research and design centres in the world, which works with the Centro Stile Ferrettigroup, an experienced team of architects and designers and are built at the Group’s modern production facilities in Italy and the USA. Founded in 1968, Ferretti Group is present in the USA with Ferretti Group North America, in Asia with a representative branch in Shanghai as well as in Brazil with Ferretti Group Brazil based in San Paulo.
The group consists of the following design and production companies:
, which today houses the company headquarters.
IIn the early 90s, Ferretti started an internationalisation process. In 1993, Ferretti of America, Inc. was founded to market motoryachts in the USA, Canada, Mexico, Venezuela and the Caribbean. Ferretti of America liaised with the sales network that was already present in Greece, France, Spain, Germany and Great Britain, increasing the impact of Ferretti sales abroad.
In 1994, Ferretti began an international marketing process by creating a strategic network of dealers outside Europe.
During the second half of the 90s, after institutional investors acquired a share in the capital, an expansion strategy for external lines was started through the well-targeted acquisition of companies producing top of the range motoryachts.
In 1996, Ferretti began operating in the segment of yachts with fibreglass flybridges, measuring 28 to 40 metres in length, through Custom Line S.p.A.
In 1998, the group purchased Cantieri Navali dell’Adriatico – CNA S.r.l., which specialized in building open type motor boats with the prestigious Pershing brand.
During the same year, Ferretti entered in the sport fisherman craft segment with the aquisition of American company Bertram Yacht, Inc. - the Miami shipyard and owner of one of the most famous brands in the world .
In 1999 Ferretti Group purchased C.R.N. S.p.A., a shipyard specialising in the production of maxiyachts in fibreglass and megayachts with steel hulls and aluminium superstructures, measuring over 30 metres in length.
In the year 2000, Ferretti purchased 100% of the capital of Riva S.p.A., one of the best known and most exclusive shipyards in the world, today producing of luxury fibreglass yachts measuring 10 to 35 metres in length, both flybridge and open.
In June 2000, with the aim of further consolidating its growth and development process, Ferretti Group decided to list on the Official Italian Stock Exchange (MTA). In 2001, the company was admitted to the STAR segment (High Requisite Share Segment) of the Borsa Italiana (Italian Stock Exchange).
In May 2001, head company Ferretti S.p.A. acquired assets of the Oram shipyard in La Spezia, where the new Riva production area would subsequently be built.
In August 2001, Ferretti finalized an agreement for the acquisition of the Apreamare S.p.A. shipyards in Sorrento, market leader in the production of gozzo sorrentino boats measuring 7 to 16 metres in length.
In November 2001, acquisition of the Mochi Craft S.r.l. shipyard in Pesaro was finalized.
In 2002, the Group took over Diesse Arredamenti, in order to acquire new skills in the nautical furnishings sector, complementary to its yacht building activity.
In 2002 the Group also finalized acquisition of Cantiere Navale Mario Morini in Ancona, which enabled CRN to extend its production capacity, Pinmar S.L., a company specialized in yacht painting and refitting, and Zago S.p.A., an Italian company operating in high profile wooden manufactured pieces and furnishings.
Between June 2002 and January 2003, the Ferretti management team and institutional investors present among the shareholders (Permira), decided to launch a Voluntary Public Tender Offer to acquire the entire share capital of the Company, with the aim of further expanding the Group through acquisitions and a precise strategic, national and international plan.
In 2004, through Pershing, Ferretti Group acquired the Itama shipyard, a prestigious brand, which specializes in the construction of open motoryachts, completing the current definition of the Group.
In 2008 Ferretti Group acquired the assets, brands and activities of Allied Marine, an American company specialized in After Sales services and marketing of both new and pre-owned motor yachts, as well as brokerage services on the US market.
In 2009 in order to align its organisational structure to the new market scenario, Ferretti Group changed its structure and undertook a series of strategic and operative actions.
The Group’s equity was divided between Norberto Ferretti and the management (38.2%), Mediobanca (8.8%), and senior and mezzanine lenders (the latter with a total 53% in exit participation rights). Norberto Ferretti, the Group’s management and Mediobanca hold 100% of the Group’s voting rights.
In 2010, with the aim of continuing to focus on its core business, the Ferretti Group sold its 60% share in the capital of Pinmar S.L., a Spanish company specializing in painting mega-yachts, 100% of Apreamare S.p.A. and the nautical pole of Torre Annunziata (Naples).
In 2010 Ferrettigroup Brasil was established.
Customers of the group have included Richard Burton
, Brigitte Bardot
. and Sophia Loren
.
. The sporting results achieved were excellent. Norberto Ferretti won the Class 1 Offshore World Championship title in 1994.
The Ferretti team won the European Offshore Championship in 1995. In 1997 it won both European and World champion titles. The company attributes these winnings to a hi-tech hull designed with a carbon-fiber autoclave.
. In 2000, it was temporarily listed in the Italian Stock Exchange, but decided to be taken private citing concerns for negative financial climate by the September 11, 2001 attacks
. Permira had a 54 times return of its original investment from the listing.
In October 2006 the owners reconsidered flotation and filed an application to list its shares on the Milan stock exchange. Due to a high level of interest from private equity buyers, the IPO was postponed. Candover
bought 60% of the company in an auction, outbidding the French PAI Partners
and leaving the rest 30% to the founder and 10% to Permira. Based on financial data, the group was valued at 1.7 billion euros.
In May 2008, when the full extend of the crisis had not yet hit, rumours circulated indicating Candover
was eyeing a second IPO for the business which was seeing profits of EUR 158m on a EUR 933m turnover (2007). In September, the Consob granted the authorization for the IPO on both the London and Milan bourses.
However, in January 2009 the company appointed Rothschild to advice on talks with its banking syndicate, led by Royal Bank of Scotland (RBS) and Mediobanca to restructure a EUR 1.1bn debt. Initially Candover
was expected to participate in a EUR 100m capital injection but by February, it had walked away from the table, writing off its investment; Permira
had already done so.
The new Board of Directors is composed of the following members:
- Norberto Ferretti – Chairman
- Giancarlo Galeone – Chief Executive Officer
- Alessandro Foti – Vice Chairman
- Lamberto Tacoli – Director
- Augusto Fantozzi – Director
Since then the company has succeeded in renegotiating its debt, reducing its to EUR 550m against a conversion of credits into exit participation rights, a EUR 85m capital injection underwritten by the founder and CEO, Norberto Ferretti and some of the management team (EUR 70m) and Mediobanca (EUR 15m). RBS has also agreed to grantmedium terms facilities to fund working capital requirements (EUR 65m) and three major financial institutions (already partnering with Ferretti), have extended the short-term facilities (EUR 24m) to medium-term ones.
The Group’s equity is now held by Norberto Ferretti and the Group’s management (38.2%), Mediobanca (8.8%) and senior and mezzanine lenders (for a total of 53% in exit participation rights). In particular, as a result of the agreement, Norberto Ferretti, the Group’s management and Mediobanca hold 100% of the Group’s voting rights.
the Ferretti group has developed a system called ARG (anti-rolling gyro), which reduces the effects of the waves on their boats, using a counterweight
and a gyroscope
.
Sailboat
A sailboat or sailing boat is a boat propelled partly or entirely by sails. The term covers a variety of boats, larger than small vessels such as sailboards and smaller than sailing ships, but distinctions in the size are not strictly defined and what constitutes a sailing ship, sailboat, or a...
. It now focuses on the powerboat
Powerboat
A powerboat is another name for a motorboat. Powerboat may also refer to:* Powerboating* F1 Powerboat World Championship* Offshore powerboat racing...
sector, specializing in luxury motoryachts production. The Group is based in Forlì
Forlì
Forlì is a comune and city in Emilia-Romagna, Italy, and is the capital of the province of Forlì-Cesena. The city is situated along the Via Emilia, to the right of the Montone river, and is an important agricultural centre...
and is one of the leading companies in the world of design and construction of luxury motoryachts and sporting boats measuring from 10 to 85 meters long.
The wide range of yachts offered is designed by highly specialized technicians and engineers at Advanced Yacht Technology, one of the most advanced naval research and design centres in the world, which works with the Centro Stile Ferrettigroup, an experienced team of architects and designers and are built at the Group’s modern production facilities in Italy and the USA. Founded in 1968, Ferretti Group is present in the USA with Ferretti Group North America, in Asia with a representative branch in Shanghai as well as in Brazil with Ferretti Group Brazil based in San Paulo.
Group structure
- Pershing S.p.A. (high performance open cruisers, 11 to 35 meters)
- Ferretti Yachts division (flybridge motoryachts, 14 to 27 meters)
- Itama Cantieri Navali S.p.A (open motoryachts, 13 to 23 meters)
- the American Bertram Yacht, Inc. (sport fisherman motoryachts, 12 to 22 meters)
- Riva S.p.A. (open and flybridge motoryachts, 8 to 35 meters)
- Mochi Craft division (lobster boats, 13 to 23 meters)
- Custom Line division (maxi yachtMaxi yachtA maxi yacht usually refers to a racing sailboat of at least in length. It is also a Swedish brand of smaller sailing yachts.-Origin:The term maxi originated with the International Offshore Rule rating system, which in the 1970s and 1980s measured offshore racing yachts and applied a...
s in composite materials from 30 to 34 meters with two decks) and, - CRN S.p.A., (maxi yachts in composite materials from 39 to 43 meters with 3 decks and steel megayachts from 46 to 120 meters.
Financial data
On August, 31st, 2010, the Ferretti Group registered a turnover of over 500 million euro[1]. On August 31st, 2010, the EBITDA was around 30 million euro, in line with the budget, and an increase compared with the approximately 26 million euro registered during the previous nautical year. The improvement of this result, in a market still characterized by price pressure, was primarily due to the key initiatives taken by the Ferretti Group during the course of the 2009-2010 nautical year, which resulted in a cost reduction of around 50 million euro, and clearly demonstrates the effectiveness of the Group reorganization. As of August, 31st, 2010, the Group’s Net Financial Debt improved compared with the previous year and was reduced to around 590 million euro, basically in line with the Plan.History
The company was founded in 1968 by Alessandro and Norberto Ferretti and produced its first motor sailer in 1971. During the 1980s, the two brothers decided to specialize in the production of luxury motoryachts. They established a new unit in ForlìForlì
Forlì is a comune and city in Emilia-Romagna, Italy, and is the capital of the province of Forlì-Cesena. The city is situated along the Via Emilia, to the right of the Montone river, and is an important agricultural centre...
, which today houses the company headquarters.
IIn the early 90s, Ferretti started an internationalisation process. In 1993, Ferretti of America, Inc. was founded to market motoryachts in the USA, Canada, Mexico, Venezuela and the Caribbean. Ferretti of America liaised with the sales network that was already present in Greece, France, Spain, Germany and Great Britain, increasing the impact of Ferretti sales abroad.
In 1994, Ferretti began an international marketing process by creating a strategic network of dealers outside Europe.
During the second half of the 90s, after institutional investors acquired a share in the capital, an expansion strategy for external lines was started through the well-targeted acquisition of companies producing top of the range motoryachts.
In 1996, Ferretti began operating in the segment of yachts with fibreglass flybridges, measuring 28 to 40 metres in length, through Custom Line S.p.A.
In 1998, the group purchased Cantieri Navali dell’Adriatico – CNA S.r.l., which specialized in building open type motor boats with the prestigious Pershing brand.
During the same year, Ferretti entered in the sport fisherman craft segment with the aquisition of American company Bertram Yacht, Inc. - the Miami shipyard and owner of one of the most famous brands in the world .
In 1999 Ferretti Group purchased C.R.N. S.p.A., a shipyard specialising in the production of maxiyachts in fibreglass and megayachts with steel hulls and aluminium superstructures, measuring over 30 metres in length.
In the year 2000, Ferretti purchased 100% of the capital of Riva S.p.A., one of the best known and most exclusive shipyards in the world, today producing of luxury fibreglass yachts measuring 10 to 35 metres in length, both flybridge and open.
In June 2000, with the aim of further consolidating its growth and development process, Ferretti Group decided to list on the Official Italian Stock Exchange (MTA). In 2001, the company was admitted to the STAR segment (High Requisite Share Segment) of the Borsa Italiana (Italian Stock Exchange).
In May 2001, head company Ferretti S.p.A. acquired assets of the Oram shipyard in La Spezia, where the new Riva production area would subsequently be built.
In August 2001, Ferretti finalized an agreement for the acquisition of the Apreamare S.p.A. shipyards in Sorrento, market leader in the production of gozzo sorrentino boats measuring 7 to 16 metres in length.
In November 2001, acquisition of the Mochi Craft S.r.l. shipyard in Pesaro was finalized.
In 2002, the Group took over Diesse Arredamenti, in order to acquire new skills in the nautical furnishings sector, complementary to its yacht building activity.
In 2002 the Group also finalized acquisition of Cantiere Navale Mario Morini in Ancona, which enabled CRN to extend its production capacity, Pinmar S.L., a company specialized in yacht painting and refitting, and Zago S.p.A., an Italian company operating in high profile wooden manufactured pieces and furnishings.
Between June 2002 and January 2003, the Ferretti management team and institutional investors present among the shareholders (Permira), decided to launch a Voluntary Public Tender Offer to acquire the entire share capital of the Company, with the aim of further expanding the Group through acquisitions and a precise strategic, national and international plan.
In 2004, through Pershing, Ferretti Group acquired the Itama shipyard, a prestigious brand, which specializes in the construction of open motoryachts, completing the current definition of the Group.
In 2008 Ferretti Group acquired the assets, brands and activities of Allied Marine, an American company specialized in After Sales services and marketing of both new and pre-owned motor yachts, as well as brokerage services on the US market.
In 2009 in order to align its organisational structure to the new market scenario, Ferretti Group changed its structure and undertook a series of strategic and operative actions.
The Group’s equity was divided between Norberto Ferretti and the management (38.2%), Mediobanca (8.8%), and senior and mezzanine lenders (the latter with a total 53% in exit participation rights). Norberto Ferretti, the Group’s management and Mediobanca hold 100% of the Group’s voting rights.
In 2010, with the aim of continuing to focus on its core business, the Ferretti Group sold its 60% share in the capital of Pinmar S.L., a Spanish company specializing in painting mega-yachts, 100% of Apreamare S.p.A. and the nautical pole of Torre Annunziata (Naples).
In 2010 Ferrettigroup Brasil was established.
Customers of the group have included Richard Burton
Richard Burton
Richard Burton, CBE was a Welsh actor. He was nominated seven times for an Academy Award, six of which were for Best Actor in a Leading Role , and was a recipient of BAFTA, Golden Globe and Tony Awards for Best Actor. Although never trained as an actor, Burton was, at one time, the highest-paid...
, Brigitte Bardot
Brigitte Bardot
Brigitte Anne-Marie Bardot is a French former fashion model, actress, singer and animal rights activist. She was one of the best-known sex-symbols of the 1960s.In her early life, Bardot was an aspiring ballet dancer...
. and Sophia Loren
Sophia Loren
Sophia Loren, OMRI is an Italian actress.In 1962, Loren won the Academy Award for Best Actress for her role in Two Women, along with 21 awards, becoming the first actress to win an Academy Award for a non-English-speaking performance...
.
Racing
Motivated by the needs for high tech synergy and greater international recognition, the company entered in 1989, into offshore racingOffshore powerboat racing
Offshore powerboat racing is racing by large, specially designed ocean-going powerboats, typically point-to-point racing.Probably one of the largest, most dangerous, and most powerful racing machines of all, the extreme expense of the boats and the fuel required to participate make it an expensive...
. The sporting results achieved were excellent. Norberto Ferretti won the Class 1 Offshore World Championship title in 1994.
The Ferretti team won the European Offshore Championship in 1995. In 1997 it won both European and World champion titles. The company attributes these winnings to a hi-tech hull designed with a carbon-fiber autoclave.
Ownership
In 1995, after the sudden death of Alessandro Ferretti, 70% of the group was acquired by PermiraPermira
Permira is a United Kingdom-based private equity firm with global reach. The firm advises funds with a total committed capital of approximately €20 billion....
. In 2000, it was temporarily listed in the Italian Stock Exchange, but decided to be taken private citing concerns for negative financial climate by the September 11, 2001 attacks
September 11, 2001 attacks
The September 11 attacks The September 11 attacks The September 11 attacks (also referred to as September 11, September 11th or 9/119/11 is pronounced "nine eleven". The slash is not part of the pronunciation...
. Permira had a 54 times return of its original investment from the listing.
In October 2006 the owners reconsidered flotation and filed an application to list its shares on the Milan stock exchange. Due to a high level of interest from private equity buyers, the IPO was postponed. Candover
Candover
Candover Investments plc is a British-based private equity firm, specialising in arranging and leading large buyouts and buyins. Candover Investments is structured as an investment trust...
bought 60% of the company in an auction, outbidding the French PAI Partners
PAI Partners
PAI partners is a major European private equity house and is the leading private equity investor in the French market. It is one of the oldest and most experienced firms in the sector with its origins dating back to Paribas Affaires Industrielles, the historical principal investment activity of...
and leaving the rest 30% to the founder and 10% to Permira. Based on financial data, the group was valued at 1.7 billion euros.
In May 2008, when the full extend of the crisis had not yet hit, rumours circulated indicating Candover
Candover
Candover Investments plc is a British-based private equity firm, specialising in arranging and leading large buyouts and buyins. Candover Investments is structured as an investment trust...
was eyeing a second IPO for the business which was seeing profits of EUR 158m on a EUR 933m turnover (2007). In September, the Consob granted the authorization for the IPO on both the London and Milan bourses.
However, in January 2009 the company appointed Rothschild to advice on talks with its banking syndicate, led by Royal Bank of Scotland (RBS) and Mediobanca to restructure a EUR 1.1bn debt. Initially Candover
Candover
Candover Investments plc is a British-based private equity firm, specialising in arranging and leading large buyouts and buyins. Candover Investments is structured as an investment trust...
was expected to participate in a EUR 100m capital injection but by February, it had walked away from the table, writing off its investment; Permira
Permira
Permira is a United Kingdom-based private equity firm with global reach. The firm advises funds with a total committed capital of approximately €20 billion....
had already done so.
The new Board of Directors is composed of the following members:
- Norberto Ferretti – Chairman
- Giancarlo Galeone – Chief Executive Officer
- Alessandro Foti – Vice Chairman
- Lamberto Tacoli – Director
- Augusto Fantozzi – Director
Since then the company has succeeded in renegotiating its debt, reducing its to EUR 550m against a conversion of credits into exit participation rights, a EUR 85m capital injection underwritten by the founder and CEO, Norberto Ferretti and some of the management team (EUR 70m) and Mediobanca (EUR 15m). RBS has also agreed to grantmedium terms facilities to fund working capital requirements (EUR 65m) and three major financial institutions (already partnering with Ferretti), have extended the short-term facilities (EUR 24m) to medium-term ones.
The Group’s equity is now held by Norberto Ferretti and the Group’s management (38.2%), Mediobanca (8.8%) and senior and mezzanine lenders (for a total of 53% in exit participation rights). In particular, as a result of the agreement, Norberto Ferretti, the Group’s management and Mediobanca hold 100% of the Group’s voting rights.
Technology
Together with MitsubishiMitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...
the Ferretti group has developed a system called ARG (anti-rolling gyro), which reduces the effects of the waves on their boats, using a counterweight
Counterweight
A counterweight is an equivalent counterbalancing weight that balances a load.-Uses:A counterweight is often used in traction lifts , cranes and funfair rides...
and a gyroscope
Gyroscope
A gyroscope is a device for measuring or maintaining orientation, based on the principles of angular momentum. In essence, a mechanical gyroscope is a spinning wheel or disk whose axle is free to take any orientation...
.