How Quadrivio scored c.2.5x return on Mohd exit
There were 10 bidders in the first round and three in the second, Quadrivio Group's CEO Walter Ricciotti told Real Deals
Quadrivio & Pambianco has exited its majority stake in Mohd, an Italian premium furniture e-commerce and retail business, selling a 65% stake to Dexelance, a listed Italian group active in design, lighting and furnishings.
The deal marks the second exit for its Lifestyle Fund, following the sale of Italian sneaker brand Autry last year, and delivered a multiple of c.2.5x and an IRR of over 20%, according to Quadrivio Group's CEO Walter Ricciotti.
Local media have reported the deal value to be €44m, but Ricciotti didn’t confirm this.
“When we first invested, the company had an Ebitda of €1.5m and generated approximately €28m in sales,” Ricciotti told Real Deals. “We saw an opportunity to scale the business, invest in infrastructure and help professionalise its operations.”
Founded in the 1960s in Messina by the Mollura family, Mohd (short for Mollura Home Design) began as a high-end design store and has since grown into a global online retailer, selling to more than 100 countries.
Organic value creation
Quadrivio's Lifestyle Fund acquired its majority stake in November 2019 and has backed Mohd’s expansion online and offline. The company now runs six showrooms across Italy and has grown its headcount from 60 to 115.
“The plan was simple,” Ricciotti said. “It was about strengthening the organisation, investing in technology – mainly a new warehouse and software systems to better manage the complexity of the supply chain – and adding new physical retail, in parallel with an online strategy.”
One of the key investments made during the holding period was the construction of a 12,000sqm logistics hub in Torregrotta, Sicily, designed to support Mohd’s global distribution network. The fund also invested in multilingual e-commerce capabilities and hired co-CEO Gianluca Armento to help steer the next phase of growth.
In addition, Mohd opened two new stores: the showrooms in Via Turati and Officina Mohd, both in Milan.
When asked what challenges they faced during their holding period, the CEO said Covid was both a challenge and an opportunity for them. In Italy, the lockdowns lasted for almost 12 months between 2020 and 2021, resulting in store closures.
While physical store sales dipped, Ricciotti said the digital channel compensated, helping the business lift its profit margin from 6–7% to about 10% by the time of exit. Sales reached approximately €70m by 2024, and growth was entirely organic without any add-ons.
“People were spending more time online and at home. That helped drive demand for home furnishings, and our digital channels benefited,” he explained.
Sales process
The exit process began about eight to 10 months ago and attracted interest from both financial sponsors and strategic buyers, culminating in a two-round process. Dexelance was awarded exclusivity about three months before signing.
Across both rounds of bidding, there was a 2:1 split of strategics and financial sponsors.
There were 10 bidders in the first round and three in the second – two strategics and one financial sponsor. According to Ricciotti, Dexelance stood out because they were listed and were appreciated by the founding family, which was important since the Molluras are reinvesting and retaining a central role.
An IPO was ruled out early due to scale. “The company wasn’t big enough for a listing,” Ricciotti noted. “So we didn’t explore a dual-track process.”
ADVISERS
Quadrivio & Pambianco
Legal: Pedersoli Gattai
Corporate finance: Ethica Group
The Mollura family
Legal: Carnelutti
Dexelance
Legal: Fivers Studio Legale & Tributario