Source: La Bottega

Three Hills (the “Firm”) is delighted to announce a new partnership with leading luxury hospitality amenities supplier, La Bottega Group (“La Bottega” or “the Company”), which will see the Company receive c. €115 million of new funding through a combination of preferred capital and equity from the Firm. The investment plays to Three Hills’ existing expertise in the hospitality space, with investments including Sant Ambroeus and The Wilde.

As part of the new structure, Three Hills acquires a stake from The Equity Club, which invested in La Bottega in May 2019 on behalf of a number of Italian entrepreneurial families brought together by Mediobanca Private Banking. The Firm has also brought onboard one of the largest sovereign wealth funds globally, which is already an investor in the Three Hills platform, as a co-investor, and, thanks to their balance sheet and industry knowledge, will boast additional firepower to execute a very ambitious buy and build strategy in a highly fragmented sector. The investment is aimed at supporting the entrepreneur Tommaso Pacini and wider management team in executing their ambitious growth plans, which is centred on further international expansion through organic initiatives and M&A. It has also allowed Tommaso Pacini to consolidate a majority position in the Company with a less dilutive financing instrument thanks to the tailor-made financing approach of the Firm.

Founded in 1981, La Bottega has emerged as a premier supplier of amenities in the luxury hospitality market operating exclusive brands like Dyptique, Etro, Culti, Santa Maria Novella and many others within the hospitality space through licensing agreements. Headquartered outside Senigallia, Italy, La Bottega operates several well-established subsidiaries across key regions, including the US, APAC, and Europe. With a legacy spanning over four decades, La Bottega continues to set industry standards in providing exceptional amenities tailored to the discerning needs of upscale hotels worldwide. The Company boasts a portfolio of approximately 10,000 high-profile and diversified clients, including toptier establishments, such as Four Seasons, Ritz-Carlton, Mandarin Oriental, and Peninsula.

The global high-end hospitality industry continues to flourish thanks to the sustained increase in the number of high-net-worth individuals (HNWI) worldwide. La Bottega is viewed as a strategic leader in this market and is well positioned to further consolidate the sizeable and fragmented market for Hotel Operating Supply & Equipment (OS&E). This segment is attractive in itself and expected to grow to a total size of c.€22 billion by 2028. The Company has already completed successful acquisitions including Beltrami, a specialist in fabrics and bed, bath and table linens and, most recently in March 2024, Vanity Group, a leading global provider of hotel amenities in the mid- to upper-scale segment that will strengthen the competitive position of La Bottega in regions like Southeast Asia and Australia.

By staying abreast of the latest travel trends, La Bottega has adopted to the needs of the sophisticated and eco-conscious luxury consumer, who is increasingly focused on the adoption of green practices to improve their carbon footprint. Consequently, the Company has developed a full range of innovative alternative packaging solutions, which in 2023 alone resulted in a 45% reduction in plastic use across its partner hotels, leading to a saving of 690 tons of carbon dioxide, 104k tons of water, and 1.1k tons of petroleum. This level of innovation has helped La Bottega maintain its solid and sustainable growth trajectory, having generated €125.6 million of revenues in FY 2023, at an impressive CAGR of c. +10% since FY 2019.

Three Hills has always focused on Italian entrepreneurs capable of building unique businesses globally and who are looking for an international platform like ours to continue to grow. Tommaso and his team represent exactly this, 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 aligns strongly with Three Hills' sustainability principles and together with our in-house Value Creation team, we are keen to drive the Company’s full impact potential in the years to come.Mauro Moretti, Founder and CEO at Three Hills, regarding the investment.

A sincere thank you to Roberto Ferraresi and Gianmarco Gandolfi, who have accompanied me through these very important years for the Company. I am proud that Three Hills has recognised that La Bottega is a high-quality business with significant growth potential, and this investment represents an exciting and progressive step for the Company. Three Hills has consistently demonstrated its innovative thinking and deep sector knowledge throughout. These attributes convinced us that they were the right partner for us. Through this next phase, we will continue to seek new M&A opportunities, improve existing operations, and drive customer-focused innovation in line with what La Bottega has historically delivered. Tommaso Pacini of La Bottega

About 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 and entrepreneur-led businesses, Three Hills offers flexible financing solutions and value-added expertise in order to support companies achieve their transformational growth ambitions, whilst allowing entrepreneurs to retain control of their companies. Three Hills has EUR 2.3 billion of assets under management, with backing from Europe’s leading industrial holding groups, family offices and entrepreneurs, as well as global institutional investors. With offices in London, Milan, New York and Luxembourg, Three Hills operates with a growing team of around 65 professionals. The firm is also a certified B Corporation, emphasising its commitment to sustainability and impact.

About La Bottega

LA BOTTEGA, a leading provider of luxury hotel toiletries and amenities for the hospitality market, boasts over 40 years of expertise in the industry. With a global presence, we operate through our 10 regional head offices strategically located in key cities worldwide: New York, London, Barcelona, Paris, Trecastelli, Dubai, Singapore, Hong Kong, Shanghai, and Tokyo. Servicing approximately 10,000 hotels across the globe, including top 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: Passalacqua Hotel Moltrasio, The St. Regis Roma, Grand Hotel et de Milan, Faena Hotel Miami, The Plaza New York. LA BOTTEGA is renowned for its commitment to Italian philosophy and prestigious partnerships with internationally acclaimed perfumery, fashion, skin-care, and hair-care brands. Our esteemed collaborators include luxury names such as Etro, Roberto Cavalli, Santa Maria Novella, Diptyque, Susanne Kaufmann, Natura Bissé, Grown Alchemist, Culti, DS&Durga, and Malin+Goetz.