NBRP, Chequers back Biolchim's SBO from Wise

Amedeo Goria
04 August 2017

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Private equity fund managers NB Renaissance Partners (NBRP) and Chequers Capital have acquired Biolchim from Italian GP Wise.

NBRP and Chequers acquired an equally split controlling stake in the business, according to a source familiar with the situation. The company's management team and CEO, Leonardo Valenti, also invested in the business acquiring an 8% stake.

According to unquote" sister publication Mergermarket, several private equity houses took part in the auction process, including Triton Partners, Alpha Capital Partners, Ergon Capital Partners, Bridgepoint and PAI Partners.

The group has seen its revenues grow from €30m to €85m between 2008 and 2016 and expects to generate €115m in revenues in 2017, according to a statement.

In August 2014, Biolchim acquired Bologna-based fertiliser producer Cifo with backing from Wise. The company acquired Canadian algae extracts producer West Coast Marine Bio Processing in February 2015, Hungarian potting soil substrate manufacturer Matécsa in January 2017 and most recently a 60% stake in fertiliser manufacturer Ilsa in March 2017.

The build-up acquisitions allowed the business to develop direct access to raw materials, and expand its geographical reach and products portfolio, said the source. Furthermore, the company trades in the food and agriculture sector, which is attracting significant interest from PE houses, as unquote" reported three months ago.

NBRP is the Italian subsidiary of NB Private Equity Partners, founded in 2015 following the spinout of Intesa Sanpaolo's private equity branch. In July 2017, the GP held a €300m final close for its Annex fund, which brought the GP's total assets under management to €920m.

NBRP is currently managing its first vehicle, NB Renaissance Partners, which held its final closing in December 2015 on €620m. Following the initial €300m acquisition of a 72% stake of Intesa Sanpaolo's portfolio and the deployment of €200m across three additional deals in 2016, the fund is currently 70% invested.

NBRP Annex Fund acquired the remaining 28% of Intesa's portfolio for €100m and is currently 50% deployed, unquote" understands. The investment periods end in June 2018 and December 2018 for the first fund and the Annex Fund, respectively.

Previous funding
In August 2006, Imi Fondi Chiusi, the private equity arm of Intesa Sanpaolo, acquired a controlling stake in the business, while Arca Impresa Gesioni, the buyout subsidiary of Meliorbanca, acquired a 17% stake. The firm's founder also reinvested in the business.

In June 2010, Fondo Dimensione Impresa, managed by Assietta Private Equity, acquired a 27% stake in Prima, the holding company of Biolchim. Assietta acquired the shares from the founders of the firm, while Imi Fondi Chiusi retained a 45% stake and Arca Impresa Gestioni a 17% holding.

Subsequently, Wise acquired Biolchim from Assietta, IMI and Arca in January 2013 for an estimated consideration of €21m via its €170m Wisequity III fund.

Company
Founded in 1972 and headquartered in Bologna, Biolchim produces fertilisers and speciality chemicals focusing on agriculture. The company trades under the brands, Biolchim, Cifo, Ilsa and Bionatura, and has a presence in 80 countries, including Brazil, Germany, Hungary, Poland, China, New Zealand, Canada, Colombia and Turkey.

The business employs 300 people and has seven production plants, of which four are in Italy. Following the recent acquisitions, the company posted a pro-forma turnover of €105m and pro-forma EBITDA of €19.5m in 2016, according to two sources familiar with the matter.

People
NB Renaissance Partners – Stefano Bontempelli, Marco De Simoni (partners).
Chequers Capital – Guillaume Planchon (partner); Philippe Guérin (head of investments).
Wise – Michele Semenzato (founding partner); Luigi Vagnozzi (director).
Biolchim – Leonardo Valenti (chair, CEO).

Advisers
Equity (NBRP) – Banca IMI (M&A); Gatti Pavesi Bianchi (legal); KPMG (commercial due diligence, tax); Lond Term Partners (financial due diligence); Essentia Advisory (debt).
Equity (Chequers) – Ethica Corporate Finance (corporate finance); NCTM (legal, tax); PwC (commercial due diligence); Arthur D Little (financial due diligence); Ethica & Mittel Debt Advisory (debt).
Vendor – Simmons & Simmons (legal); KPMG (financial due diligence).
Company – Advancy (commercial due diligence).