Biolchim
Private Equity Manager (GP)
Chequers Capital
Details
Region
Europe
Sector
Industrials
Stage
Small/mid buyout
Type
Primary
Fund Vintage
2017
Exit Type
Trade Sale
Highlights
Proceeds
£1.9m
MOIC
4.2x
IRR
36%
About the company
Biolchim specialises in the production and commercialisation of bio-stimulants and specialty fertilisers.
These enable farmers to improve the quantity and quality of their crops while using less water and chemical fertilisers.
Investment rationale
- Biolchim is a producer of environmentally-friendly bio-stimulants, made mostly from raw materials of natural origin.
- Potential to improve product mix and focus on highly specialised products.
- Opportunity for further international expansion, both organically and through acquisitions.
Our relationship
PIN is a primary investor in three Chequers Capital funds and Pantheon holds an advisory board seat for each fund. In addition, PIN has previously co-invested alongside Chequers Capital.
Active management and value creation
-
- Increased the quality of the business by improving the efficacy of the products, building a larger portfolio, strong research and development, and better financial performance.
- Increased awareness among fertiliser manufacturers of the need to offer greener products.
- International expansion to over 50 countries with production facilities in Europe and South America.
- Strong performance across subsidiaries in China, Brazil, Hungary and Italy.
- Pricing power, with the ability to re-price products and services in an inflationary environment.
- Successful management of the operations and supply chain resulting in EBITDA, growth including during a period of increasing raw materials prices and energy costs.
- Biolchim achieved a three-year earnings revenue CAGR of 8% and three-year earnings CAGR of 14%.
- A large strategic multiple uplift accounts for most of the value creation and was achieved through positioning the company to be an attractive acquisition target for a large trade buyer.
Strategic positioning drives multiple uplift
Exit
Biolchim was acquired by US strategic corporation buyer, J.M. Huber, in November 2022 after a competitive selling process with several trade buyers took place. This provided a full exit for Chequers Capital and for PIN at a Multiple of Invested Cost (MOIC) of 4.2x and IRR of 36%. The uplift versus the December 2021 valuation was 40%.
