News

Milan, 13 February 2024 – Itelyum is poised to become a major producer of chemically recycled PET in Italy with the acquisition of a significant share of Plasta Rei, marking a new chapter in its commitment to the circular economy and the valorisation of special waste. This investment further aligns the company with the objectives of the European Green Deal, the Circular Economy Action Plan,and with the decarbonisation initiatives promoted by the leading companies within the plastic sector.

Itelyum and Plasta Rei are building an advanced chemical recycling plant in Cisterna di Latina to recycle PET waste derived primarily from food packaging, with the aim of converting it into 100% recycled PET granules. The product’s quality is comparable to that of virgin PET, and stands out for its ability to be recycled countless times without the degrading observed in mechanical recycling. Plasta Rei's innovative technology is thus expected to increase the recycled PET used in the food packaging industry, favouring a sustainable bottle-to-bottle process.

The chemical recycling process developed by Plasta Rei allows for the recovery of more than 95% of PET waste, thereby resulting in significantly fewer CO₂ emissions vs. those associated with non-recycled PET. This initiative not only reflects Itelyum's commitment to environmental sustainability and corporate social responsibility (ESG), but it is also expectedto generate attractive economic returns on investment.

Itelyum- a portfolio company of Stirling Square Capital Partners LLP with the participation of Deutsche Beteiligungs AG - will allow Plasta Rei to benefit from synergies by leveraging on the group’s know-how in chemical processes, both operationally and in R&D, creating the foundation for the growth of a new business line.

Marco Codognola, CEO of Itelyum commented: "Itelyum’s entry in the plastic recycling market will be an exciting new challenge for the group which we expect to complement our technological capabilities and to further promote our long-term commitment to pursue sustainable development goals. We are confident that the investment in Plasta Rei will be a significant opportunity for the group’s future growth, both within the Italian market and internationally via potential further projects".

Francesco Borgomeo, chairman and shareholder of Plasta Rei commented: "Itelyum’s entry into Plasta Rei’s capital further testifies to the strength of the innovative recycling project we have embarked on, and that has thus far received the support from multiple stakeholders including trade unions, the prefecture, and the regional, provincial, and municipal authorities. We thank all the respective bodies for their constructive approaches that have allowed us to reach the project’s achievements to date, and we share our sincere gratitude to Plasta Rei’s entire team for their pioneering work in plastic waste recycling and valorisation, all while maintaining a commitment to environmental sustainability”.

MiIan, February 5, 2024 - Itelyum, a national leader and international player in the management, recycling and valorisation of industrial waste, controlled by Stirling Square Capital Partners LLP with the participation of Deutsche Beteiligungs AG, has made a significant step to expand in two new markets, Germany and France.

Itelyum has achieved a leading position in Italy, consolidating the market at national level and successfully implemented a “one-stop-shop” strategy in the implementation of a circular model on industrial waste, including for solvents that are managed by its Purification Business Unit.

The Italian group based in Lodi, near Milan, supported by the local presence and relationship networks of its two international shareholders, has expanded its international footprint in two new markets, having acquired two companies: SAFECHEM Europe GmbH, based in Düsseldorf (Germany), and SOLEDI S.A.S., based in Beaumont-les-Valence (France), accounting for combined revenues of c.€40 million.

SAFECHEM Europe GmbH is a European leader in safe and sustainable solvent solutions and high-value-added services for surface cleaning applications. The asset-light, service-based business model of SAFECHEM, serving more than 5,000 customers around the world (including China, UK, USA and Mexico), complements well the capabilities of Itelyum’s Purification Business Unit.

SOLEDI S.A.S. is mainly active in the distribution of pure and recovered solvents and paints and in the intermediation of chemical waste.

Marco Codognola, CEO of Itelyum commented: "In the last few years, Itelyum has strengthened and consolidated its position as a leader for the circular economy in the Italian market, which currently sees us as the main operator for the management and recycling of industrial waste. Today we are pursuing the same objective abroad, with the entry into the German and French markets in the field of chemical waste management and the marketing of sustainable chemical products and services. In this segment, where the Group is a technology leader, a strong synergy is thus created between the skills of local management teams and Itelyum’s know-how, in the name of innovationand sustainability.”

A €450m Sustainability-Linked Bond launched by Itelyum has successfully closed.

The €450m bond issue represents an innovation in the field of sustainability-linked bonds due to its novel step-up features. The bond received strong interest, with the book being oversubscribed multiple times, aided by its ESG features that attracted a number of socially responsible investors.

The bond was priced with a 4.625%coupon and has a 5 year maturity.  The proceeds will be used to finance the buyout of the Itelyum Group (the “Transaction”), that completed yesterday, as well as its ambitious domestic and international growth strategy.

Stirling Square Capital Partners (“Stirling Square”), a leading pan-European mid-market private equity firm, today announces its further commitment to Itelyum Group (“Itelyum” or the “Company”) in partnership with Deutsche Beteiligungs AG (“DBAG”), a leading publicly listed mid-market private equity firm. Stirling Square’s Fourth Fund and its co-investors will acquire a majority stake and DBAG’s Fund VII will acquire a minority stake in Itelyum from Stirling Square’s Third Fund (the “Transaction”). The management team of the Company will also make a significant investment in the Transaction.

Established in1963, Itelyum is a leading European Circular Economy player, specialised in recycling complex streams of hazardous liquid waste, leveraging distinctive chemical competences. Itelyum operates 25 plants, employs over 800 people, and is a technology and market leader in most of the niches in which it operates: waste oil regeneration, solvent purification, and industrial waste management and recycling. With its one-stop-shop approach and solid processes and procedures, the Company targets industrial companies which need to comply with increasingly strict waste regulations and reach higher recycling rates.

Under Stirling Square’s stewardship, Itelyum has evolved from a local, family-owned company into a professionally managed European leader with multiple product lines across diversified streams of hazardous waste. The Company has a virtuous environmental footprint, as its activity results in 500 kilotons fewer CO2emissions, 1,000 tons fewer air pollutants, 15 million cubic meters of water savings and 400 hectares less of land consumption, per year.

Enrico Biale, Partner of Stirling Square, commented: “Itelyum is a champion of sustainability and a reference for the circular economy in Europe. Stirling Square has the opportunity to continue to participate in Itelyum’s value build-up by capitalising on the Company’s market leadership, strong technical expertise, and a significant acquisition pipeline. We are excited to partner with DBAG for this next phase of international growth and delighted to continue the journey with Marco Codognola and his team.”

Tom Alzin, member of DBAG’s Board of Management, said: “We are investing in a company in our core sector of industrial services, whose business is particularly forward-looking. We are happy to use our expertise to support inorganic growth and assist Stirling Square in developing Itelyum’s European presence, with future acquisitions in Germany.”

Marco Codognola, CEO of Itelyum, added: “Since our association with Stirling Square we have kept growing both organically and through the integration of a number of business acquisitions.  These have allowed Itelyum to further its know-how and footprint, and ultimately to consolidate an innovative business model that meets and often anticipates our customers’ need for sustainable services. I am proud to be leading this successful team of managers and employees that have proven their ability to deliver outstanding results for its shareholders and society at large.”

The Transaction, which is expected to close in October 2021, represents the eighth platform investment by Stirling Square’s Fourth Fund.

We are pleased to announce the rebranding of the Viscolube group of companies to “Itelyum”.

Since the Third Fund’s acquisition of Viscolube in 2016, Stirling Square has transformed the business from a niche regenerator of used motor oil into Italy’s premier platform for industrial waste recycling and integrated environmental services. Since 2016 the company has expanded its capabilities through the roll-up of hazardous waste processing businesses across Northern Italy and the transformational acquisition of Bitolea, Italy’s leading player in the purification of used solvents from the pharmaceutical industry.

Today the business is a true champion of the circular economy with 80% circular turnover across 15 sites, providing regeneration, purification and environmental solutions to a number of clients in the lubricant, pharmaceutical and industrial sectors.

CEO Antonio Lazzarinetti stated: “Today, we present much more than a new brand. With Itelyum we have created a platform dedicated to providing sustainable solutions for the planet while creating value for our people, our customers and our stakeholders.”

Stirling Square Capital Partners (“Stirling Square”), a leading pan-European mid-market private equity firm, today announces the acquisition of Bitolea Holding SpA (“Bitolea”) by its Third Fund portfolio company Viscolube Srl (“Viscolube”) from Clessidra Capital Partners II (“Clessidra”).

Viscolube, a 2016 investment by Stirling Square’s Third Fund, is the Italian leader in the used motor oil recycling sector, and a growing player in the hazardous waste collection and treatment sector in Italy. It operates two chemical plants which process over 170 thousand tonnes of used lubricant oil annually and an industrial waste collection network managing more than 140 thousand tonnes for more than 12,000 customers.

Bitolea is the leading Italian player in the treatment and recycling of solvents and other chemical waste, managing over 110 thousand tonnes of products annually. The company is headquartered in Pavia and maintains a share of 35% in the waste solvent regeneration market in Italy, and a share of 65% in the active pharmaceutical ingredients (“API”) sub-segment of the market.

Both companies are chemical engineering-driven business with state-of-the-art facilities that will benefit from cross-fertilization initiatives and best-practice adoption. The combined business represents the technology leader in the liquid waste regeneration sector as well as a one-stop shop for industrial waste solutions.

Antonio Lazzarinetti, CEO of Viscolube commented: “The combination of Viscolube and Bitolea will create a national champion of the circular economy, with undisputed leadership in technology and process know-how, unique development capabilities, and a zealous focus on the highest environmental, health and safety standards.”

Enrico Biale of Stirling Square commented: “Bitolea represents a compelling strategic fit for Viscolube. This is a truly transformational acquisition, which establishes the clear leading platform in the highly fragmented hazardous waste industry. Importantly, both businesses serve a critical environmental service, as the alternative to regeneration for such waste is incineration. We are proud to invest in businesses founded on a principle of respect for the environment.”

Simone Cucchetti, Managing Director of Clessidra commented: “We are glad to complete this transaction. Over the past few years, we believe to have successfully transitioned Bitolea from a family owned business to a management-led corporate player. Bitolea will benefit from being part of a larger group in the context of the waste recycling industry.”

Clessidra and Bitolea were advised by Lazard (M&A Advisory), NCTM (Legal), PricewaterhouseCoopers (Accounting), Bain & Co (Business).

Stirling Square and Viscolube were advised by Leonardo & Co. and Banca Euromobiliare (M&A Advisory), Pavia e Ansaldo (Legal M&A), Gattai Minoli Agostinelli & Partners (Legal Banking), and Equita SIM (Debt Advisory).