Wise’s Biolchim bolts on Ilsa

According to a statement, the company supported the acquisition through capital from its own balance sheet and a credit facility provided by Unicredit.

Following the acquisition, the merged group expects to generate an aggregate turnover of €115m in 2017 and will manage eight production plants with 300 employees. Moreover, according to a statement, the group will be able to manufacture the main raw materials required for bio-stimulant products.

Prior to the acquisition, Biolchim posted €85m in revenues with EBITDA of €16.5m.

Previous funding
In April 2006, Fondo Centro Impresa, the private equity fund managed by Sanpaolo IMI Private Equity, fully acquired the business, along with the management team and a group of private investors.

As part of the deal, Fondo Centro Impresa invested €3.5m for a 45% shareholding, while other financial investors acquired 49%. The management team took the remaining 6%.

More recently, Assietta Private Equity acquired a 27% stake in the business from the founders via its vehicle Fondo Dimensione Impresa in June 2010.

Lastly, in January 2013, Wise backed Biolchim's MBO via its vehicle Wisequity III for approximately €21m. The transaction resulted in the exit of Sanpaolo IMI and Assietta.

Following the transaction, the company acquired Italian home and garden products manufacturer Cifo in August 2014, Canadian algae extracts producer West Coast Marine Bio Processing in February 2015 and Hungarian substrate and compost manufacturer Matécsa in January 2017.

Company
Ilsa is headquartered in Arzignano, near Vicenza, and produces organic and organic-mineral fertilisers and bio-stimulants. Established in 1956, the company has two production plants in Italy and one in Brazil. It generated a turnover of €22m with EBITDA of €3m in 2016.

People
Biolchim Group – Leonardo Valenti (CEO).
Ilsa – Paolo Girelli (chair).

Advisers
Acquirer – Studio Spada & Partners (tax); Simmons & Simmons (debt advisory); LabAnalysis (environmental due diligence); LTA Alliance (legal).
Vendor – Arkios (corporate finance); Gitti and Partners (legal).

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