Aimia Inc. has signed an agreement to acquire Giovanni Bozzetto S.p.A., also known as Bozzetto Group, from Chequers Capital and other minority shareholders.
The purchase price is based on an enterprise value of approximately $328 million and is expected to be financed with a combination of cash and debt. The executive management team of Bozzetto will reinvest a portion of their net proceeds from the sale.
Bozzetto Group Overview
Bozzetto Group is an ESG-focused provider of specialty chemicals that manufactures over 2,000 proprietary chemicals to service its core textile, water solutions, and dispersion end markets. The company has a product portfolio comprised of over 75% ESG-focused chemicals and has built a strong reputation as a pioneer of developing ESG-focused solutions. Bozzetto operates with a global industrial footprint of six manufacturing facilities and services over 1,500 customers in more than 90 countries. Sales are generated across EMEA (49%), South-East Asia (24%), Turkey (15%), the Americas (8%), and China (4%).
Financial Details
Bozzetto achieved annual revenue of approximately $326 million and Adjusted EBITDA of $47 million for the fiscal year ended December 31, 2022, with an Adjusted EBITDA margin of 14.5% and higher than 80% free-cash flow conversion. The acquisition is expected to close before the end of the second quarter of 2023, subject to regulatory approval and other customary closing conditions.
Expansion Plans
Under Aimia’s ownership, Bozzetto will seek to substantially expand into the Americas and Asia organically and through accretive acquisitions, further diversifying its historically European presence.
Paladin Private Equity Partnership
Paladin Private Equity, LLC will act as Aimia’s partner on the transaction. Upon closing of the transaction, Aimia and Paladin will enter into certain agreements on customary terms and conditions and providing for, among other things, minority governance rights, preferred return for Aimia, certain carry-related rights to the benefit of Paladin, and an option for Paladin to acquire up to a 19.9% minority equity position of Bozzetto within one year of closing. Tariq Osman and Eric Hauser of the Paladin team will join the Board of Directors of Bozzetto and support its strategic growth initiatives.