Global infrastructures asset management firm Icon Infrastructure, through its Icon Infrastructure Partners IV, bought a majority stake in the capital of Eco Eridania spa, a company based in Arenzano (Genoa) being an Italian integrated waste collection, transportation, treatment and disposal business and the clear market leader in the specialist sanitary waste sector in Italy. The company reached about 145 million euros in revenues in 2017. The sellers are Xenon Private Equity V fund and Roccaforte srl, an holding company controlled by the family of Eco Eridania’s founder and ceo Andrea Giustini (see here the press release).
Icon hase been advised for the deal by Pavia e Ansaldo law firm, while Roccaforte was supported by Studio Rossi Finamore Delli Ponti Gandolfo in Genoa and by SCP Studio Legale in Rome. Xenon was instead advised by Pavia e Ansaldo law firm.
This is a third round of investment by private equity funds in Eco Eridania after Fondo Italiano d’Investimento had invested for the first time in 2011 and then sold its stake to Xenon Private Equity in June 2014, when Xenon was already a minority shareholder in company after having converted some convertible bonds. Since then Eco Eridania started an aggressive m&a campaign which has been financed by bond issues.
Fondo Italiano had invested in Eco Eridania in September 2011, acquiring a 38.77% stake subscribing a 10 million euros capital increase in the company. In December 2012, Fondo Italian subscribed a convertible bond for 1.44 million euros while Xenon subscribed two other convertible bonds for other 10.86 million euros. At the same time and thanks to the new cash Eco Eridania bought Team Ambiente spa.
In March 2013 both Fondo Italiano and Xenon converted into equity their bonds and subscribed a new capital increase in the company for a total of 3.3 million euros with Xenon subscribing a new convertible bond too for other 2.2 millions. Thanks to those proceeds Eco Eridania bought Paderno Energia srl,Elettrochimica Carrara srl and a business branch of Ghi.be.ca Tecnoplus srl. Eco Eridania then was transformed into the major player of its sector in Northern and Central Italy. In June 2014 Fondo Italiano sold its stake in Eco Eridania’s capital to Xenon which ended owning just a little bit less than 50% in the company (see here a previous post by BeBeez).
In December 2014 Eco Eridania issued a 10 million euros minibond which was entirely subscribed by the Muzinich Italian Private Debt fund in order to fund a further organic and m&a growth of the company (see here a previous post by BeBeez).
In November 2015 Eco Eridania then bought Eco Mistral srl, also thanks to a new bond issue entirely subscribed by the Muzinich Italian Private Debt fund.
Finally in November 2016, Eco Eridania, ha placed 82.5 million euros of new bonds in two tranches to Muzinich European Private Debt, Pemberton Emmdf I Holdings and Pemberton Debt Holdings I, while the shareholders subscribed a new 20 million euros capital increase. All that was aimed at raising capital to fund the acquisition of Mengozzi.