Bluegem acquires Panzeri Group through Pool Service

12TH OCTOBER 2020

Bluegem Capital Partners, the European mid-market fund focused on consumer brands, is pleased to announce the acquisition, through its portfolio company Pool Service, of Panzeri Diffusion, an Italian group active in the professional haircare sector.

Panzeri group, founded in 1999 by Ivano Panzeri and based in Malnate (VA), operates in the sector of professional hair cosmetics in Italy, with a portfolio of its own brands, such as z.one concept, milk_shake, No Inhibition and Simply Zen, Depot and Urban Tribe. The group has an important presence in foreign markets, particularly in the USA. In 2019 it generated a total revenue of around €49 million, employing more than 130 people.

In September 2019, Bluegem acquired the Pool Service/Medavita group with the aim of creating an aggregator platform in the professional hair cosmetics sector with a build-up strategy. In October 2020, the acquisition of Panzeri Diffusion marks the first important step for Pool Service/Medavita for the consolidation of the field that offers significant operational synergies. Medavita will also be able to leverage Panzeri's successful experience in the US market to develop its presence in North America.

The new entity, that will be established from the merger of the two groups, will be called BeautyNova and will represent the third largest group in the sector in Italy with an aggregate pro-forma revenue of around €90 million (according to 2019 data), a share of exports exceeding 60% of revenue in more than 70 countries, including branches in China, Latin America and the USA, and staff of over 300 employees. The market of professional haircare is estimated to be worth €540 million in Italy and €14 billion worldwide.

BeautyNova will count on an asset of over 12,000 own product formulations, an internal R&D team of 15, and a wide portfolio of own brands.

Stefano Banfo, current CEO and shareholder of the group, will lead the development project over the next few years.

Emilio Di Spiezio Sardo, co-founder of Bluegem Capital Partners, commented:

“This is a transformative acquisition for Pool Service and Bluegem III, and we expect the group to continue to grow under the leadership of Stefano Banfo. The deal fits perfectly into the investment strategy of Bluegem III, which is focused on consumer staples with strong cash generation that have demonstrated resilience during the delicate phase of Covid-19. Furthermore, this transaction confirms Bluegem's continued interest in Italy, a market we believe in and where we see further opportunities to help accelerate the performance of some of the most promising entrepreneurial businesses.”

Stefano Banfo, CEO and shareholder of Pool Service, commented:

"We have a long-standing business relationship with Ivano Panzeri and his team and we look forward to combining these highly complementary businesses to create the third largest Italian haircare group."

Ivano Panzeri, Founder of Panzeri Diffusion, commented:

"The reasons behind this important decision for my professional career are to ensure continuity and further development for the company, to be stronger in overcoming the new challenges and the growing competitiveness of the market. Together, we can explore the synergies between the two businesses and gain a wider footprint globally as a joint group. Further, the opportunity to remain in the province of Varese, and therefore secure the jobs and support the local economy was an important consideration in my decision.”

Constantin Rojahn, Director of Bluegem, commented:

“This represents Bluegem's fourth investment in the beauty sector over the past three years and we are excited to further expand our presence and expertise in this field.”

Deloitte Financial Advisory assisted Bluegem in the transaction as financial advisor, while Latham & Watkins and Studio Gattai, Minoli, Agostinelli Partners acted respectively as legal and tax advisors for Bluegem. PwC acted as debt advisor and was responsible for financial due diligence. Kearney assisted the buyer with the commercial due diligence.

Milano Global Advisors (MGA) assisted the selling shareholder as financial advisor, while Studio Barberi & Volpi Associati acted as legal advisor.