(All figures in Canadian dollars unless otherwise
noted)
SECOND MAJOR ACQUISITION OF 2023 ESTABLISHES
STRONG GROWTH PLATFORM FOR AIMIA
TORONTO, May 9, 2023
/CNW/ - Aimia Inc. (TSX: AIM), a holding company focused on
long-term global investments, is pleased to confirm that it has
closed the previously announced acquisition of Giovanni Bozzetto S.p.A. (referred to as
"Bozzetto Group", "Bozzetto", the "Company"). Bozzetto is one of
the world's largest ESG-focused providers of specialty sustainable
chemicals, serving over 1,500 clients with a portfolio of over
2,000 products. All amounts denominated in Euros below have been
translated at the closing date of May 9,
2023 at an exchange rate of 1.4685.
Phil Mittleman, CEO of Aimia,
said: "Today marks an important milestone for Aimia as we close our
second acquisition since the sale of our PLM stake in the second
half of last year. With over 100 years of operations, high EBITDA
margins coupled with strong free cash flow conversion and a
fantastic management team, Bozzetto represents an outstanding
opportunity for Aimia to own one of the world's largest ESG-focused
providers of specialty sustainable chemicals. Bozzetto, as well as
our previously announced acquisition of Tufropes, will form the
backbone of our strategy to continue to acquire businesses that
generate significant cash flow for Aimia while presenting strong
opportunities for further growth."
Aimia invested $206.3 million
(€140.5 million) for an equity stake of 94% in the Company.
Bozzetto's executive management team invested $13.3 million (€9.1 million) of their after-tax
sales proceeds alongside Aimia into the new investment structure,
which represents a minority position of approximately 6%.
Aimia completed the Bozzetto related financing at the
subsidiary level in the amount of $139.5
million (€95.0 million) at closing, with a weighted average
coupon rate of approximately 8.1% (subject to change with
Euribor)(1). Transaction costs were $12.3 million (€8.4 million) and debt financing
fees were $6.8 million (€4.6
million). Excluding the transaction costs of $12.3 million (€8.4 million) and accounting for
cash on hand of $14.2 million (€9.7
million) the enterprise value at closing was $333 million (€227 million), representing
approximately 7.0 times fiscal 2022 proforma Adjusted EBITDA.
For the fiscal year 2022, Bozzetto reported revenue of
$320.6 million (€218.3 million) and
Adjusted EBITDA of $45.0 million
(€30.6 million). Including the recent Levaco transaction that
closed at the end of the fiscal year 2022, proforma annual revenue
would be $335.3 million (€228.3
million) and Adjusted EBITDA margin would be approximately 14%.
Paladin Private Equity LLC ("Paladin") collaborated with Aimia
on this transaction. In connection thereto, upon closing of the
transaction, Aimia and Paladin have entered into certain agreements
on customary terms and conditions substantially as previously
announced by Aimia on March 6,
2023.
Roberto Curreri, CEO of Bozzetto
commented: "Bozzetto is driven by a passion for innovation in the
specialty sustainable chemicals space. I'm excited to usher in the
next phase of Bozzetto's journey under Aimia's stewardship. I'm
confident that our partnership with Aimia will catalyze meaningful
growth and opportunities for many years to come."
The Bozzetto financing was provided by Crédit Agricole Italia
S.p.A. (acting as Agent) and Intesa Sanpaolo S.p.A. both acting as
Joint Global Coordinator, Mandated Lead Arrangers, Bookrunners, and
BPER Banca S.p.A and MPS Capital Services Banca per le Imprese
S.p.A., acting as Mandated Lead Arrangers.
About Aimia
Aimia Inc. (TSX: AIM) is a holding company with a focus on
making long-term investments in private and public companies, on a
global basis, through controlling or minority stakes. The company
owns a portfolio of investments which include: 100% ownership of
Tufropes, a global leader in the manufacturing of high-performance
synthetic fiber ropes and netting solutions for global aquaculture,
maritime, and other various industrial customers, 94% ownership of
Bozzetto Group, one of the world's largest ESG-focused providers of
specialty sustainable chemicals, a 10.85% stake in Clear Media
Limited, one of the largest outdoor advertising firms in
China, a 48.8% equity stake in
Kognitiv, a global SaaS company inspiring customer loyalty through
data-driven personalization, as well as an 11.8% equity stake in
TRADE X, a global B2B cross-border automotive trading platform.
For more information about Aimia, visit www.aimia.com.
About Bozzetto
Founded in 1919 and headquartered in Filago, Italy, Bozzetto is one of the world's largest
ESG-focused providers of specialty sustainable chemicals, offering
sustainable textile, water and dispersion chemical solutions with
applications in several end-markets including the textile, home and
personal care, plasterboard and agrochemical markets.
Bozzetto has over 1,500 long-standing clients in over 90 countries, an exceptionally vast
portfolio of over 2,000 products and a global production footprint
with 6 manufacturing facilities and over 500 employees
worldwide.
Find out more at www.bozzetto-group.com.
Forward-Looking Statements
This press release contains statements that constitute
"forward-looking information" within the meaning of Canadian
securities laws ("forward-looking statements"), which are based
upon our current expectations, estimates, projections, assumptions
and beliefs. All information that is not clearly historical in
nature may constitute forward-looking statements. Forward-looking
statements are typically identified by the use of terms such
phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will",
"would" and "should", and similar terms and phrases, including
references to assumptions.
Forward-looking statements in this press release include, but
are not limited to, statements with respect to the weighted average
coupon rate in connection with the debt financing; the use of tax
assets; and the opportunities for future growth. Forward-looking
statements, by their nature, are based on assumptions and are
subject to known and unknown risks and uncertainties, both general
and specific, that contribute to the possibility that the
forward-looking statement will not occur. The forward-looking
statements in this press release speak only as of the date hereof
and reflect several material factors, expectations and assumptions.
Undue reliance should not be placed on any predictions or
forward-looking statements as these may be affected by, among other
things, changing external events and general uncertainties of the
business. A discussion of the material risks applicable to us can
be found in our current Management's Discussion and Analysis and
Annual Information Form, each of which have been or will be filed
on SEDAR and can be accessed at www.sedar.com. Except as required
by applicable securities laws, forward-looking statements speak
only as of the date on which they are made and we disclaim any
intention and assume no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Non-IFRS Measures
Reference to (i) "Adjusted EBITDA" is the unaudited earnings of
Bozzetto before interest, taxes, depreciation and amortization, and
(ii) "Adjusted EBITDA margins" is Bozzetto's Adjusted EBITDA
divided by its revenue. Accordingly, it may not be possible to
compare Bozzetto's Adjusted EBITDA, Adjusted EBITDA margins, free
cash flow or free-cash flow conversion with Adjusted EBITDA,
Adjusted EBITDA margins, free cash flow, free cash flow conversion
or other financial measures of other companies having the same or
similar businesses.
In addition, all financial statement information contained in
this press release has been derived from Bozzetto's audited
consolidated financial statements for the year ended December 31, 2022, which are prepared in
accordance with IFRS and reported in Euros.
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(1) Subject to change
semi-annually with reference to the Euribor six-month interest
rate. As of May 8, 2023, the Euribor six-month interest rate was
3.605%.
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SOURCE Aimia Inc.