EOS Investment Management (EOS IM) has acquired a 67% stake in Italian coffee capsules and beans producer Neronobile, while the company’s founders, the Furia family, retained the remaining 33% holding.
Equita, via its €100m Equita Private Debt Fund, supported EOS IM’s acquisition by fully subscribing to an €8.9m subordinated bond. The vehicle is now 70% deployed, according to Equita Private Debt managing partner Paolo Pendenza.
EOS drew capital from its EOS Private Equity fund, which was launched in 2016 with a €150m target and held a first close on €55m in November 2016. The Luxembourg-based vehicle is structured as a SICAV-SIF fund and aims to acquire majority stakes in European SMEs with revenues between €20-70m. According to the firm, the vehicle is still fundraising but has reached the last stages of its closing process.
According to the deal, Neronobile managing director Giampaolo Furia will become CEO, while EOS will support the management team by appointing some new members to the company’s board.
The GP plans to help Neronobile boost its organic growth and expand internationally, and in the long term intends to consolidate the company’s market position via new acquisitions within the sector.
Company
Established in 2002 and headquartered in Sarcedo, near Vicenza, Neronobile specialises in producing coffee capsules, as well as ground coffee and beans from roasting to packaging. The company sells its products under its own brands, Furia and Corcovado, which are compatible with Nespresso, Lavazza, Dolce Gusto and Caffitaly systems. In addition, Neronobile also provides customised coffee capsules and beans for clients that want to market the coffee under their own brands.
The company produced 200 million coffee capsules in 2017 and generated EBITDA of €3.2m from revenues of €20m. It expects to reach EBITDA in excess of €4m from a turnover of €24m in 2018.
People
EOS Investment Management – Ciro Mongillo (founding partner, CEO).
Equita Private Debt Fund – Paolo Pendenza (managing partner).
Neronobile – Giampaolo Furia (managing director).
Advisers
Equity – Grimaldi Studio Legale (legal); Ludovici Piccone & Partners (tax); EY(financial due diligence); Long Term Partners (corporate finance); KPMG (ESG due diligence).
Company – Bird & Bird (legal); M&C Partners (corporate finance).