06 Mar, 2023
March 6th, 2023 Paladin Private Equity LLC (“Paladin”) today announced the signing of acquisition of Giovanni Bozzetto S.p.A. (referred to as “Bozzetto Group”, “Bozzetto”, the “Company”) alongside its investment partner, Aimia Inc. Following the signing of the Tufropes transaction on January 31st, 2023, Paladin and Aimia have now signed two transactions since Paladin’s founding in December 2022. Founded in 1919 and headquartered in Filago, Italy, Bozzetto is one of the world’s leading manufacturers of ESG-friendly specialty chemicals to the global textile industry. Bozzetto manufactures over 1,000 proprietary chemicals, over 75% of which are deemed to be ESG-friendly, Bozzetto has built a strong reputation as a pioneer of developing ESG-focused chemical solutions that align with secular trends in the global textile industry related to sustainability and targeting reductions in water, energy, and hazardous chemicals usage. Bozzetto currently operates with a global industrial footprint of 6 manufacturing facilities, servicing over 1,500 customers in more than 90 countries. Sales are generated across Europe, Middle-East & North Africa (combined for 49%), South-East Asia (24%), Turkey (15%), the Americas (8%) and China (4%). Under Paladin & Aimia’s ownership, the Company will seek to substantially expand into the Americas and Asia organically and through accretive acquisitions, further diversifying Bozzetto’s historical European focus. Paladin's Founder and Managing Partner, Tariq Osman, said: "We are thrilled to partner with Aimia to support Bozzetto’s outstanding management team for the company’s next chapter of growth. We are particularly excited to support a growth strategy to expand into the Americas as we believe this aligns well with the reshoring trend in the textile industry. Under our ownership, we intend to extend Bozzetto’s already excellent ESG credentials by supporting a program of operational initiatives aimed at reducing greenhouse gas emissions, improving productivity, reducing costs and generating new carbon offset revenue streams.” Roberto Curreri, CEO of Bozzetto, said: “This is a great moment for the Bozzetto Group. Our company has built upon its long-term heritage and over the last decade has been able to combine that with a renewed value proposition, which has been the main factor enabling us to face a number of challenges with confidence, and success. With the support of Chequers, the Group has diversified its product lines and geographical presence in its core markets through strategic acquisitions. Aimia and Paladin have been presented with a unique opportunity to continue down this path and grow further, with a particular focus on America. I am very excited about this new partnership and am fully committed to leading the company to even greater heights.” Paladin has partnered with Aimia on the transaction. In connection thereto, Aimia and Paladin have entered into certain agreements on customary terms and conditions and providing for, among other things, governance rights, certain carry related rights to the benefit of Paladin, and an option for Paladin to acquire an equity position in Bozzetto from Aimia 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. Phil Mittleman, CEO of Aimia, added: “With an over 100-year history of operations, high margins coupled with strong cash flow conversion, and an excellent management team, Bozzetto represents an outstanding opportunity for Aimia to invest in an ESG-focused, global market leader. Over the past 18 months, the specialty chemicals industry has endured one of the most difficult periods in its history—including a spike in raw material prices, Covid-induced supply chain shortages and rapidly rising energy prices. Despite these challenges, Bozzetto remained resilient and maintained its strong growth and free cash flow profile. We see significant opportunities to continue to grow this business both organically and through accretive acquisitions, and we are in advanced discussions with several potential targets.” Aimia and Paladin were advised by Latham & Watkins. Chequers was advised by ADVANT Nctm and Lazard and Fineurop Soditic, while the Bozzetto management team was advised by GOP. About Paladin Paladin Private Equity LLC (“Paladin”) is a global private equity firm based in the US (Los Angeles & New York) and Germany (Hamburg) with a focus on investing in and building global market leaders within the industrial technology sector. Paladin’s investment strategy targets unique companies that dominate highly attractive niche markets encompassing highly-engineered, manufactured products and technology-enabled, business services. These companies are distinguished by deep and sustainable competitive advantages and with as yet unfulfilled global growth, lean management and digital technology, performance improvement potential. As a core part of its investment strategy, Paladin is deeply committed to achieving positive ESG outcomes within its portfolio companies, as a means to create long-term financial value from cost reductions, productivity improvements and new carbon offset revenue streams. Paladin’s investment team and senior advisor network have extensive experience advising management teams on global sales & marketing growth strategies (including new product development and geographic expansion), executing and integrating global M&A, optimizing complex global manufacturing, procurement, and supply chains and pioneering the use of lean management and cutting-edge digital technology to automate and modernize operations for maximum efficiency, quality, innovation and safe operations. Further information on Paladin can be found on the website: www.paladinprivateequity.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 1,000 products and a global production footprint with 6 manufacturing facilities and over 500 employees worldwide. Further information on Bozzetto can be found on the website: www.bozzetto-group.com About Aimia Aimia Inc. (TSX: AIM) is a holding company with a focus on making long-term investments in public and private companies, on a global basis, through controlling or minority stakes. The company owns a portfolio of investments which include: 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 B2B technology company enabling collaborative commerce, a 10.8% equity stake in TRADE X, a global B2B cross-border automotive trading platform as well as a wholly owned investment advisory business, Mittleman Investment Management, LLC. For information on Aimia can be found on the website: www.aimia.com For more information about Paladin or the Bozzetto transaction, contact: Tariq Osman Founder & Managing Partner, Paladin Private Equity LLC osman@paladinprivateequity.com