BIOLCHIM-CIFO and ILSA

Together for a big industrial project


The Biolchim-Cifo Group recently signed an agreement to purchase 60% of Ilsa S.p.A., a solid company based in Arzignano (province of Vicenza) producing and selling organic and organo-mineral fertilizers, bio-stimulants and products with specific action since 1956.

Thanks to its three production facilities, two of which based in Italy (Arzignano and Molfetta) and one in Brazil (Porto Alegre), and to its selected distribution network operating both in the Italian market and abroad, the 2016 turnover of Ilsa S.p.A. amounted to nearly EUR 22 million with an EBITDA of around EUR 3 million.

Through this transaction, the two companies created one of the world’s most important industrial groups in the specialty fertilizer and bio-stimulant industry with 8 manufacturing plants, 8 business branches, and approximately 300 employees operating in 80 countries, with companies able to manufacture all the main raw materials required for the bio-stimulant production (protein hydrolysates, plant extracts, humic and fulvic acids, derivatives of algae, etc.) as well as a wide range of end products with both high technological content and high quality standard.

The 2016 turnover of the Biolchim Group was nearly EUR 85 million, with an EBITDA of about EUR 16.5 million; adding Ilsa S.p.A., the gross revenue will become approx. EUR 115 million in 2017.

The two groups fine-tuned their action plan to develop synergies mainly related to the cross-selling (products and markets), the technological and industrial strengthening both in Italy and in Brazil, the arrangement of a special focus on R&D and Regulatory, which are becoming more and more important in the specialty fertilizer segment, as well as the logistics, also thanks to the Molfetta plant.

Great satisfaction for the success of the operation was expressed by Mr. Leonardo Valenti, CEO of the Biolchim Group:

“We continue our path towards the strengthening of our Group in the markets through the industrial and technological development and the vertical integration that were completed by this transaction. We found a great similarity with Ilsa as to the R&D strategic approach that both companies have carried out over the last ten years, so we are sure that our union will speed-up the time-to-market processes as to the new products and the new technologies”.

and by Mr. Paolo Girelli, Chairman of Ilsa Spa:

“We deeply believe in this project because of the strong complementarity of the two companies that will allow us to accelerate the strengthening process of our already implemented industrial capacity and to extend and complete our range of products, as well as to increase quickly our position in the foreign markets”.

 

Both the Managing Directors highlighted the importance of the mutual esteem for the agreement achievement in such a short time, as well as the human and professional quality of both the managerial teams for the successful undertaking.

Thanks to this acquisition, the Biolchim Group is going on with its growth path started in 2008 by the management led by the CEO, Mr. Leonardo Valenti, and with the investment of the private equity fund Wisequity, which brought to the acquisition of Cifo – a leader company in the home & garden segment – in 2014; of West Coast Marine Bio Processing – a Canadian company producing algae extracts – in 2015; and, of 70% of Matécsa Kft – a Florimo-branded substrate and compost manufacturer operating a peat bog in Hungary – in 2016.

In this transaction, the consultants of the Biolchim Wise team were: Studio Spada, Simmons & Simmons, Lab Analysis, the lawyer Argentino Ottaviano of the firm LTA Alliance, while the Ilsa S.p.A. consultants were: Arkios and Gitti & Partners. Further to its own capital resources, Biolchim was supported by Unicredit.