Massimo Zanetti aiming to find financial sponsor by year-end

Micaela Osella
08 November 2021

Tweet
Facebook
LinkedIn
Google plus
Send to

Italian coffee business Massimo Zanetti Beverage Group has kicked off its auction with sale documents distributed exclusively to financial sponsors, according to two sources close to and four sources familiar with the situation.

Sell-side adviser BNP Paribas is set to collect preliminary offers for the Italian coffee company within the next two weeks, one of the sources close and the four sources familiar said.

The sale process is expected to happen swiftly, with the vendor looking to skip the binding-offers phase and directly award exclusivity to a potential suitor in the first half of December, the sources said. A deal could be signed before the end of this year, they added.

Between 25% and 30% of the company's capital is for sale, the sources said.

Massimo Zanetti and BNP Paribas did not return requests for comment.

Massimo Zanetti debuted on the Star segment of the Milan Stock Exchange in June 2015. At the time, Banca IMI and BNP Paribas were its global coordinators, as reported. It then completed its delisting from the Milan Stock Exchange in February 2021, as reported in the Italian press.

A few months ago, several funds such as Advent, Blackstone, Carlyle and Oaktree approached the company, two of the sources familiar said. The proposals did not come at the right time but helped convince management to launch a structured sale process, the sources said.

The funds from the stake sale will be directed towards the company's M&A strategy, one of the sources close said. The group has already identified a large target of interest, this source said, adding that talks between those parties are taking place and are at a "good point".

Massimo Zanetti is looking for a compelling valuation, the other source close said, noting that the company will return to the same level of revenue and EBITDA prior to the Covid-19 pandemic by the end of this year.

In 2020, Massimo Zanetti generated revenues of EUR 809m, down from EUR 914m in 2019, according to this source. In 2020, it had EUR 36m in EBITDA, down from EUR 84m in 2019, the source added, explaining that the pandemic impacted its financials.

In a recent interview with Nordest Economia, group chairman Massimo Zanetti said the company expects to close 2021 with a consolidated turnover of EUR 1.2bn.

Massimo Zanetti Beverage Group is headquartered in Treviso, in northern Italy. It is present in more than 100 countries with brands including Chock Full o' Nuts, Hills Bros, Segafredo Zanetti Espresso, Meira, Brodies, Tiktak and La San Marco, with products such as espresso coffee, tea, spices and barista-standard espresso-making equipment.