BS buys Ruetgers unit

The Italian private equity firm has maintained its recent spate of deal activity, acquiring chemical production business Giovanni Bozzetto for an undisclosed sum.

Italian private equity house BS Private Equity has made a further investment from the Italian Private Equity Fund IV fund with the acquisition of Giovanni Bozzetto, an Italian producer of chemical products for the textile, construction and detergent industries.

The management buyout is being led by Paolo Bozzetto and Hans Peter Schwederski, the current managing directors of the company. Bozzetto (a member of the family which founded the company) will own approximately 35 per cent of the company, which was sold to Ruetgers in the late 1980s.

Giovanni Bozzetto is a manufacturer of chemical goods for the textile, construction and detergent industries and has production facilities in Italy, Spain, Germany, Turkey, Poland, China and Indonesia. The business was founded in 1919 and reported consolidated turnover in 2002 of E106m and EBITDA of E20m. It employs approximately 400 people.

The value of the transaction has not been disclosed, although debt financing for the transaction will be provided by Centrobanca.

Reutgers was required by the European Antitrust Commission to sell Giovanni Bozzetto as part of its takeover of Degussa. The transaction is subject to the approval of the European Antitrust Commission as well as the Italian antitrust authority.

In a statement, BS said its strategy for Giovanni Bozzetto was to sustain the company’s growth in Eastern Europe and the Far East, both internally and through add-on acquisitions, while at the same time strengthening its leading presence in the European countries.

The BS team involved in the deal was led by managing partner Francesco Sironi and Luciana Russo. BS Private Equity was advised by Pavia e Ansaldo (legal) and PWC (business, financial, tax).

The deal is the fourth completed by BS Private Equity since September. In October, the firm completed a brace of deals, comprising the acquisition of fabric manufacturer Klopman as well as a 55 per cent stake in Selcom, an Italian electronics business, for an undisclosed sum. At the end of September, BS teamed up with Centrobanca to back a management buyout of Italian packaging group Radici.