Benetton Family Business Profile

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Benetton Family Business Profile

Edizione S.r.l. is one of the biggest holding companies in Italy. It is a multifaceted company which has involvement textiles, clothing, infrastructure, real estate, agriculture and food and beverages. Currently the company is focusing its investments in the infrastructure sector with key holdings in the European road and airport networks.

Based in Treviso in north-east Italy, Edizione recorded a revenue of €11.3 billion in 2016 and in the same year reported an income of €388 million. Having initially focused on knitwear, Edizione is now an investor in multiple sectors. Currently Edizione are focused on infrastructure investments through a company called Atlantia, of which Edizione holds a 30% stake. 43.3% of the Edizione's total revenue is generated through infrastructure investments.

History

Edizione was created following the success of the Benetton group in order to allow diversification in investments.

In 1955 the Benetton group began manufacturing and selling knitwear.
10 years later in 1965 the Benetton group was created. In 1981 the Edizione S.r.l. group (formerly known as Ragione di G Benetton e C. s.n.c) was created. In 1986 the Benetton group was listed for the first time on the Milan Stock Exchange. The proceeds from sales of shares were used to fund the Edizione group's diversification efforts.

Moving towards philanthropic efforts, between 1987 and 1989 the Benetton Study and Research Foundation was formed. In 1991 the Edizione group acquired an Argentinian agricultural company called Compañia de Tierras Sud Argentino S.A. In 1992, the Benetton group founded an organization called Investimenti, which was developed in order to allow investments in small and medium-sized businesses. In 1995, Edizione, alongside Leonardo Finanziaria and Mövenpick Holdings acquired 28% of the SME (both Autogrill and GS Group) from IRI. In 1998, Edizione purchased Maccarese, a farming group previously owned by Iritecna, in this year Edizione also purchased a minority stake in Pirelli & Co.

In 2000, Edizione took the move to sell the retail side of their assets held within the GS Group to Carrefour, a French group. The money gained from this transaction was used to invest in infrastructure services through its affiliate company Schemaventotto, which purchased a 30% stake in Autostrade (now known as Atlantia) from IRI.
In this year, Eurostazioni, a company which Edizione has a 32.71% stake in, purchased a 40% stake in Grandi Staziono, a retail space management company which focuses on train stations in Italy. Towards the end of 2000, Edizione was involved in the privatization of Turin Airport, and purchased a 24.38% share in the airport's management company Sagat.

In 2001, Edizione (through their organization Olympia) worked with Pirelli to invest in Telecom Italia. In 2003, Edizione's affiliate company Schemaventotto moved to increase its share holdings in Autostrade, a move which was designed to increase Autostrade's financial structure.

In 2005, Edizione became a minority shareholder in Investimenti Infrastruttre S.p.A. a company which holds a large stake in Gemina S.p.A/Aeroporti di Roma. In the same year, Edizione also acquired minority shares in Assicurazioni Generali.

In 2007, Edizione divested part of its investment in Telcom Italia. In 2007, Edizione also purchased 2% shares in Mediobanca and increased both its direct and indirect interest in Gemina S.p.A. In 2008, Edizione focused its investments in its sub holding company Sintonia S.A, it also allowed a number of parties, including Goldman Sachs and Mediobanca, to be involved in their capital. In 2009, Edizione divested completely from Telecom Italia.

In 2012, the ordinary shares of the Benetton Group S.p.A were delisted.
In 2013, Edizione sold its shares in Sagat. In 2014, the Benetton group began a demerger and three, legally separate groups were created; Benetton Group S.r.l (which focused on retail and sales), Olimpias Group S.r.l (which focused on manufacturing) and Schematrentanove SpA (which focused on real estate). This demerger was effective on 1st January 2015. 2015 also saw the allotment of shares of Edizione's company Atlantia to key investors such as GIC and Goldmann Sachs. In 2015, Edizione also sold all of its shares (50.1%) in World Duty Free.

Holdings

Alongside multiple investments, Edizione has five key holdings; Atlantia S.p.A, Autogrill, the Benetton Group, Olimpias and Edizione Property.

Atlantia S.p.A is a holding focusing on both Italian and international road network infrastructure and Italian and French airports. This holding is listed on the Milan Stock Exchange and at the end of 2016 had a market capitalization of €18.4 billion.

Autogrill is a food and beverage company which is found mostly in airports in 31 countries around the world. Employing 57,000 staff in 4,200 outlets, Autogrill recorded a turnover of €4.5 billion in 2016.

The Benetton Group remains focused on the retail and clothing sector. It is composed of 5,000 stores worldwide. In 2016, the Benetton Group recorded a turnover of €1.4 billion.

The Olimpias Group focuses on textile production. With production platforms in Serbia, Croatia, Italy and Romania, the company has a reported turnover of €300 million in 2016.

Edizione Property is a key player in Edizione's real estate and agriculture investments. They hold 112 prestigious high street retail properties with a total value of €1.4 billion throughout Europe. Edizione properties also overseas the agricultural sector of their holdings including the Maccarese farm in Italy and Compañia de Tierras Sud Argentino in Argentina.

Key people involved

The Edizione company is owned by four members of the Benetton family, Luciano Benetton, Carlo Benetton, Giuliana Benetton and Gilberto Benetton, all of whom hold a 25% share in the business.

A board of directors consisting of 8 members manages Edizione. Fabio Cerchiai is the Chairman, Gilberto Benetton is the Vice Chairman, Marco Patuano is the CEO, Fabio Buttignon and Giovanni Costa are both Independent Directors. The rest of the board members are members of the Benetton family; Carlo Benetton, Alessandro Benetton and Franca Bertagnin Benetton.

Reputation

Edizione has strong reputation supported by over 50 years of respectable business in Italy and worldwide. It has a key reputation for its strong financial discipline. It its known to take an entrepreneurial approach which looks to the long term of its investments.

Current activity

The Edizione group currently appears to be focusing on infrastructure. Currently Atlantia, a company under the Edizione group, is involved with a €16.3 billion takeover bid of Abertis, a Spanish infrastructure group. Atlantia, which is mostly involved in toll road operations is also aiming to acquire a €2 billion stake in the company IRB Infrastructure.

The Benetton family are also reported to have been shortlisted to purchase Ducati, an Italian motorcycle brand owned by Volkswagen. Edizione's investment company Investimenti also has plans to focus on small and medium-sized companies in Poland, France and Italy in the next five years, with a planned investment potential of €900 million.

Recent events

There have been few reported issues with the Edizione group and the Benetton family. However, in 2011 the Edizione group did issue a profit warning and there were rumors that the company may be acquired by Inditex, a Spanish clothing company which owns Zara.

In 2013, Edizione was also significantly affected by two large business transactions; the demerger of Autogrill to create World Duty Free and the merger in Gemina S.p.A to produce Atlantia S.p.A. which would concentrate on infrastructure activities in the highway and airport realms.

In summary, Edizione is an extremely successful business. Originating in 1955 with a focus on knitwear production, the organization has now moved its focus towards infrastructure investments, focusing on the road and airport network in Italy and the rest of Europe.


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