A €450m Sustainability-Linked Bond launched by Itelyum has successfully closed.
The €450m bond issue represents an innovation in the field of sustainability-linked bonds due to its novel step-up features. The bond received strong interest, with the book being oversubscribed multiple times, aided by its ESG features that attracted a number of socially responsible investors.
The bond was priced with a 4.625%coupon and has a 5 year maturity. The proceeds will be used to finance the buyout of the Itelyum Group (the “Transaction”), that completed yesterday, as well as its ambitious domestic and international growth strategy.
Stirling Square Capital Partners (“Stirling Square”), a leading pan-European mid-market private equity firm, today announces its further commitment to Itelyum Group (“Itelyum” or the “Company”) in partnership with Deutsche Beteiligungs AG (“DBAG”), a leading publicly listed mid-market private equity firm. Stirling Square’s Fourth Fund and its co-investors will acquire a majority stake and DBAG’s Fund VII will acquire a minority stake in Itelyum from Stirling Square’s Third Fund (the “Transaction”). The management team of the Company will also make a significant investment in the Transaction.
Established in1963, Itelyum is a leading European Circular Economy player, specialised in recycling complex streams of hazardous liquid waste, leveraging distinctive chemical competences. Itelyum operates 25 plants, employs over 800 people, and is a technology and market leader in most of the niches in which it operates: waste oil regeneration, solvent purification, and industrial waste management and recycling. With its one-stop-shop approach and solid processes and procedures, the Company targets industrial companies which need to comply with increasingly strict waste regulations and reach higher recycling rates.
Under Stirling Square’s stewardship, Itelyum has evolved from a local, family-owned company into a professionally managed European leader with multiple product lines across diversified streams of hazardous waste. The Company has a virtuous environmental footprint, as its activity results in 500 kilotons fewer CO2emissions, 1,000 tons fewer air pollutants, 15 million cubic meters of water savings and 400 hectares less of land consumption, per year.
Enrico Biale, Partner of Stirling Square, commented: “Itelyum is a champion of sustainability and a reference for the circular economy in Europe. Stirling Square has the opportunity to continue to participate in Itelyum’s value build-up by capitalising on the Company’s market leadership, strong technical expertise, and a significant acquisition pipeline. We are excited to partner with DBAG for this next phase of international growth and delighted to continue the journey with Marco Codognola and his team.”
Tom Alzin, member of DBAG’s Board of Management, said: “We are investing in a company in our core sector of industrial services, whose business is particularly forward-looking. We are happy to use our expertise to support inorganic growth and assist Stirling Square in developing Itelyum’s European presence, with future acquisitions in Germany.”
Marco Codognola, CEO of Itelyum, added: “Since our association with Stirling Square we have kept growing both organically and through the integration of a number of business acquisitions. These have allowed Itelyum to further its know-how and footprint, and ultimately to consolidate an innovative business model that meets and often anticipates our customers’ need for sustainable services. I am proud to be leading this successful team of managers and employees that have proven their ability to deliver outstanding results for its shareholders and society at large.”
The Transaction, which is expected to close in October 2021, represents the eighth platform investment by Stirling Square’s Fourth Fund.
We are pleased to announce the rebranding of the Viscolube group of companies to “Itelyum”.
Since the Third Fund’s acquisition of Viscolube in 2016, Stirling Square has transformed the business from a niche regenerator of used motor oil into Italy’s premier platform for industrial waste recycling and integrated environmental services. Since 2016 the company has expanded its capabilities through the roll-up of hazardous waste processing businesses across Northern Italy and the transformational acquisition of Bitolea, Italy’s leading player in the purification of used solvents from the pharmaceutical industry.
Today the business is a true champion of the circular economy with 80% circular turnover across 15 sites, providing regeneration, purification and environmental solutions to a number of clients in the lubricant, pharmaceutical and industrial sectors.
CEO Antonio Lazzarinetti stated: “Today, we present much more than a new brand. With Itelyum we have created a platform dedicated to providing sustainable solutions for the planet while creating value for our people, our customers and our stakeholders.”
Stirling Square Capital Partners (“Stirling Square”), a leading pan-European mid-market private equity firm, today announces the acquisition of Bitolea Holding SpA (“Bitolea”) by its Third Fund portfolio company Viscolube Srl (“Viscolube”) from Clessidra Capital Partners II (“Clessidra”).
Viscolube, a 2016 investment by Stirling Square’s Third Fund, is the Italian leader in the used motor oil recycling sector, and a growing player in the hazardous waste collection and treatment sector in Italy. It operates two chemical plants which process over 170 thousand tonnes of used lubricant oil annually and an industrial waste collection network managing more than 140 thousand tonnes for more than 12,000 customers.
Bitolea is the leading Italian player in the treatment and recycling of solvents and other chemical waste, managing over 110 thousand tonnes of products annually. The company is headquartered in Pavia and maintains a share of 35% in the waste solvent regeneration market in Italy, and a share of 65% in the active pharmaceutical ingredients (“API”) sub-segment of the market.
Both companies are chemical engineering-driven business with state-of-the-art facilities that will benefit from cross-fertilization initiatives and best-practice adoption. The combined business represents the technology leader in the liquid waste regeneration sector as well as a one-stop shop for industrial waste solutions.
Antonio Lazzarinetti, CEO of Viscolube commented: “The combination of Viscolube and Bitolea will create a national champion of the circular economy, with undisputed leadership in technology and process know-how, unique development capabilities, and a zealous focus on the highest environmental, health and safety standards.”
Enrico Biale of Stirling Square commented: “Bitolea represents a compelling strategic fit for Viscolube. This is a truly transformational acquisition, which establishes the clear leading platform in the highly fragmented hazardous waste industry. Importantly, both businesses serve a critical environmental service, as the alternative to regeneration for such waste is incineration. We are proud to invest in businesses founded on a principle of respect for the environment.”
Simone Cucchetti, Managing Director of Clessidra commented: “We are glad to complete this transaction. Over the past few years, we believe to have successfully transitioned Bitolea from a family owned business to a management-led corporate player. Bitolea will benefit from being part of a larger group in the context of the waste recycling industry.”
Clessidra and Bitolea were advised by Lazard (M&A Advisory), NCTM (Legal), PricewaterhouseCoopers (Accounting), Bain & Co (Business).
Stirling Square and Viscolube were advised by Leonardo & Co. and Banca Euromobiliare (M&A Advisory), Pavia e Ansaldo (Legal M&A), Gattai Minoli Agostinelli & Partners (Legal Banking), and Equita SIM (Debt Advisory).