NB Renaissance, Chequers to exit Biolchim to trade

Ero Partsakoulaki
09 August 2022

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NB Renaissance and Chequers Capital have agreed to sell Biolchim Group, an Italian producer and distributor of specialty fertilizers, to US family-owned conglomerate J.M. Huber Corporation.

Leonardo Valenti, CEO since 2008 and concurrent shareholder of Biolchim, will continue to lead the company, according to a press release. The deal is valued at around EUR 600m, as reported by the Italian press.

Private equity fund managers NB Renaissance Partners (NB) and Chequers Capital acquired Biolchim from Italian GP Wise for a total sum believed to be in the region of EUR 200m in August 2017, according to Unquote Data. The deal was understood to be financed by a club of senior lenders, made up of Banca Imi, Banco BPM, Unicredit, and UBI Banca, providing around EUR 85m of debt, as reported.

NB and Chequers acquired an equally split controlling stake in the business, with the company's management team and CEO Leonardo Valenti also investing in the business acquiring an 8% stake.

During the sponsors' tenure, Biolchim doubled in size, while revenues and EBITDA approached EUR 140m and EUR 33m in 2021, respectively, according to the press release.

The company's performance was driven by improving the product mix towards highly-specialized products, expansion of the company's international presence through subsidiaries opened in Central and South America, Asia, Australia, and New Zealand, and the development of Biolchim's international sales organization. According to the press release, the group continues to experience strong performance with double-digit growth in 2022.

Biolchim will become a part of the Huber Agro Solutions business unit of Huber Engineered Materials that currently includes Miller Chemical & Fertilizer. Huber is a global family-owned specialty engineered materials manufacturing company, with corporate offices in Atlanta, Georgia in the US, and generates circa USD 3bn in annual revenue.

Closing of the sale is subject to regulatory approvals including the foreign direct investment approval in Italy.

Company
Founded in 1972 and headquartered in Bologna, Biolchim, managed and headed by Galileo Quattro SARL, is specialized in the production of a full range of branded specialty fertilizers − trace elements, and water soluble, liquid and foliar fertilizers − with a particular focus on biostimulants. Typically used in combination with traditional fertilizers, biostimulants increase yield and harvest quality.

The group, which comprises several proprietary brands such as Biolchim, Cifo, Ilsa and Florimo, has direct access to raw materials and a global sales network supported by agronomists, biologists and chemists. It operates eight production plants globally and its products are sold in over 70 countries through both international commercial subsidiaries and specialized distributors.

People
Biolchim Group − Leonardo Valenti (CEO).
NB Renaissance − Stefano Bontempelli (co-founder and senior partner).
Chequers Capital − Guillaume Planchon (managing partner).

Advisers
Vendors & Biolchim − Gatti Pavesi Bianchi Ludovici (legal); KPMG (accounting & tax).
J.M. Huber – Jefferies (corporate finance).