Three Hills Announces Latest €1 Billion Investment in Leading Italian Luxury Hospitality Amenities Company, La Bottega

Three Hills (the “Company”) is pleased to announce a new partnership with leading provider of luxury guest amenities, La Bottega Group (“La Bottega” or the “Company”), under which the Company will receive approximately €115 million of new financing through a combination of preferred equity and equity of the Company. The investment is part of Three Hills’ existing expertise in the hotel space, which includes developments such as Sant Abroeus and The Wilde.

Under the new structure, Three Hills acquires shares from The Equity Club, which invested in La Bottega in May 2019 on behalf of several Italian entrepreneurial families brought together by Mediobanca Private Banking. The company has also brought on board one of the largest sovereign wealth funds in the world, which is already an investor on the Three Hills platform, as a co-investor, and thanks to its knowledge of the balance sheet and the industry, it will be able to boast additional rights to implement the investment in a very ambitious buy-and-buy strategy. build” in a highly fragmented sector. The investment aims to support entrepreneur Tommaso Pacini and the wider management team in implementing ambitious growth plans that focus on further international expansion through organic initiatives and mergers and acquisitions. This also enabled Tommaso Pacini to consolidate his majority position in the Company through a less dilutive financing instrument, thanks to the Company’s tailored approach to financing.

Founded in 1981, La Bottega has grown into a leading amenities provider in the luxury hotel market, serving exclusive brands such as Dyptique, Etro, Culti, Santa Maria Novella and many others in the hospitality industry through licensing agreements. Headquartered outside Senigallia, Italy, La Bottega has several well-established subsidiaries in key regions including the US, APAC and Europe. With over four decades of tradition, La Bottega continues to set the industry standard in providing exceptional amenities tailored to the demanding needs of upscale hotels around the world. The company boasts a portfolio of approximately 10,000 high-profile and diverse clients, including leading properties such as Four Seasons, Ritz-Carlton, Mandarin Oriental and Peninsula.

The global high-end hospitality industry continues to thrive with the continued growth of high-net-worth individuals (HNWIs) around the world. La Bottega is viewed as a strategic leader in this market and is well positioned to further consolidate the large and fragmented hotel operational supplies and equipment (OS&E) market. This segment is attractive in itself and is expected to grow to approximately EUR 22 billion by 2028. The company has already made successful acquisitions, including Beltrami, specializing in fabrics and bedding, bathroom and tablecloths, and most recently, in March 2024, Vanity Group, a leading global provider of hotel amenities in the mid-scale and upscale segment, which will strengthen La Bottega’s competitive position in regions such as Southeast Asia and Australia.

Following the latest travel trends, La Bottega has adapted to the needs of the sophisticated and eco-conscious luxury consumer who is increasingly focused on implementing green practices to reduce their carbon footprint. As a result, the Company has developed a full range of innovative alternative packaging solutions, which in 2023 alone resulted in a 45% reduction in plastic consumption in partner hotels, which translated into savings of 690 tons of carbon dioxide, PLN 104,000. tons of water and tons of crude oil. This level of innovation has helped La Bottega maintain a solid and sustainable growth trajectory, achieving revenues of €125.6 million in FY2023, at an impressive CAGR of approximately +10% from FY2019.

Three Hills has always focused on Italian entrepreneurs who can build unique businesses around the world and who are looking for an international platform like ours to continue to grow. Tommaso and his team represent just that and we are very happy to begin this journey together in a sector that is undergoing consolidation, while providing the tools and financial resources to enable the company to continue the ambitious growth of recent years, both in its core business and through acquisitions . As an environmentally conscious company, La Bottega also strictly adheres to Three Hills’ sustainability principles and, together with our internal value creation team, we want to realize the full potential of the Company’s impact in the years to come.Mauro Moretti, founder and CEO of Three Hills, on the investment.

Sincere thanks to Roberto Ferraresi and Gianmarco Gandolfi, who accompanied me during these very important years for the Company. I am proud that Three Hills has recognized La Bottega as a high-quality company with significant growth potential, and this investment represents an exciting and progressive step for the Company. Three Hills has consistently demonstrated innovative thinking and deep industry knowledge. These features confirmed our belief that he was the right partner for us. In the next phase, we will continue to pursue new merger and acquisition opportunities, enhance existing operations and drive customer-centric innovations in line with what La Bottega has delivered in the past. Tommaso Pacini from La Bottega

About the Three Hills

Three Hills is a multi-strategy asset manager that pioneered preferred capital solutions in the European middle market over 10 years ago. With a focus on high-growth, entrepreneurial-led businesses, Three Hills offers flexible financial solutions and value-added expertise to support companies in achieving their transformational growth ambitions, while enabling entrepreneurs to retain control of their businesses. Three Hills manages assets worth EUR 2.3 billion, with the support of leading European industrial holdings, family offices and entrepreneurs, as well as global institutional investors. With offices in London, Milan, New York and Luxembourg, Three Hills works with a growing team of approximately 65 specialists. The company is also certified as a B Corporation, highlighting its commitment to sustainability and impact.

About La Bottega

LA BOTTEGA, a leading supplier of luxury cosmetics and hotel amenities for the hotel market, boasts over 40 years of experience in the industry. With a global presence, we operate through our 10 regional headquarters offices, strategically located in key cities around the world: New York, London, Barcelona, ​​​​Paris, Trecastelli, Dubai, Singapore, Hong Kong, Shanghai and Tokyo. We serve approximately 10,000 hotels around the world, including the best international chains such as: Four Seasons Hotels, Mandarin Oriental, The Peninsula Hotels, The Ritz-Carlton, W Hotels, Rocco Forte Hotels, Aman Hotels and the most iconic independent properties such as such as: Passalacqua Hotel Moltrasio, The St. Regis Roma, Grand Hotel et de Milan, Faena Hotel Miami, The Plaza New York. LA BOTTEGA is famous for its commitment to Italian philosophy and prestigious partnerships with globally recognized perfume, fashion, beauty and hair care brands. Our valued collaborators include luxury brands such as Etro, Roberto Cavalli, Santa Maria Novella, Diptyque, Susanne Kaufmann, Natura Bissé, Grown Alchemist, Culti, DS&Durga and Malin+Goetz.