Aimia To Buy Italy's Giovanni Bozzetto For C$328 Mln; To Buy Back Up To C$100 Mln Shares

Aimia Inc. (AIM.TO) announced Monday that it has signed a definitive agreement to acquire Giovanni Bozzetto S.p.A. from Chequers Capital and other minority shareholders for an enterprise value of approximately C$328 million.

The deal is expected to close before the end of the second quarter of 2023, subject to regulatory approval and other customary closing conditions.

Bozzetto’s executive management team will reinvest a material portion of their net proceeds from the sale representing a minority position of up to 6%.

It is anticipated that the acquisition will be financed with a combination of cash and debt.

Filago, Italy -based Bozzetto is a provider of specialty chemicals, manufacturing over 2,000 proprietary chemicals to service its core textile, water solutions, and dispersion end markets. It achieved annual revenue of approximately C$326 million and Adjusted EBITDA of C$47 million with an Adjusted EBITDA margin of 14.5% for fiscal 2022.

Bozzetto currently operates with 6 manufacturing facilities, servicing over 1,500 customers in more than 90 countries.

Under Aimia’s ownership, Bozzetto will seek to substantially expand into the Americas and Asia organically and through accretive acquisitions.

Paladin Private Equity, LLC will act as Aimia’s partner on the deal. Upon closing of the transaction, Aimia and Paladin will enter into certain agreements, including 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.

Aimia and Paladin were advised by Latham & Watkins.

Separately, Aimia said its Board of Directors has approved, subject to certain conditions, an increase in its share repurchase program with authorization to purchase up to C$100 million shares.

The company also confirmed its intent to renew its Normal Course Issuer Bid which is coming up for renewal in June 2023.

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