EOS IM boosts Italian SME acquisitions with profitable coffee capsule company

Date 30 Oct 2018

Neronobile is positioned to become a key international player in the rapidly growing coffee capsule market

London 30 October 2018 – EOS Investment Management (EOS IM), an independent London based AIFM, has acquired Neronobile, a family-founded coffee company that has enjoyed sustained growth in Europe. The transaction sees EOS IM’s Private Equity Fund acquire 67% of the company Neronobile whilst the existing shareholders maintain 33%, thus maximising business continuity.

Today’s announcement marks the third Italian SME acquisition by EOS IM in less than a year and the fourth since the launch of the private equity fund in 2016 with the acquisition of Poplast, a company specialising in packaging with ecological credentials, which has already grown 40% since EOS IM made the acquisition. Neronobile is positioned to make similar returns, with revenues for 2018/2019
financial year expected to exceed €24 million.

For over 16 years, Neronobile has created and marketed high quality coffee, tea and herbal teas. Its soluble coffee capsules are their biggest growth area, having already hit the milestone of 200 million capsules sold by the end of 2017.

Ciro Mongillo, CEO & Founding Partner of EOS IM comments: “This sector is extremely interesting and primed for a major growth spurt. Capsules are expected to cover 42% of the Western European coffee market by 2021*. The UK is a less mature market for coffee capsules than Italy, but that is changing fast, with penetration of the market set to double by 2021 to 13%.”

The strength of the Neronobile business model is the flexibility to operate both on ‘open’ systems (own brand capsules, Furia and Corcovado, compatible on Nespresso, Dolce Gusto, Lavazza and Caffitaly systems) as well as on ‘closed’ ones – branded customer products. Neronobile boasts high quality, environmentally-friendly products, and has been producing and selling fully compostable
capsules since 2015.

Looking longer-term, Neronobile, through the support of EOS IM, will build upon its solid financial position by acquiring other companies in the sector. Moreover, the newly appointed commercial director will provide key background and expertise to support this phase with the aim being to break into important international markets.

Giampaolo Furia, Neronobile’s Managing Director comments: “We are extremely pleased to collaborate with our new partners and bring Neronobile into a new phase of growth and development thanks to the expansion of its product portfolio and the internationalisation of its activities. EOS IM boasts an exemplary track record and together we are sure to achieve ambitious but concrete
strategic objectives, whilst remaining faithful to our mission and our values.”

Giampaolo continues: “With the arrival of EOS IM, investments will continue to increase the market share of the compostable capsule, a product designed to safeguard the environment while maintaining excellent quality. We consider ourselves a green company, in line with the ESG principles that have always characterised the management of EOS IM.”

Ciro Mongillo, EOS IM concludes: “With this transaction, we confirm our ability to converge, that is to combine finance and entrepreneurship, using financial instruments combined with entrepreneurial skills. Neronobile has shown itself in this perfect sense: a little gem that we will work hard with its senior management to grow into a diamond, further developing its great qualities and potential.”

Equita Private Debt Fund supported EOS IM by fully subscribing a bond issued by the investment vehicle owned by the private equity fund.

EOS IM was assisted in the acquisition of NeroNobile by Grimaldi Studio Legale (legal), Ludovici Piccone & Partners (tax and structuring), Ernst & Young (financial), Long Term Partners (business) and KPMG (ESG).

Bird & Bird and M & C Partners worked for Neronobile.

Today’s operation follows the acquisition of Atex, a company at the top of the market in polypropylene and engineered polymer solutions; and Eurofiere, leader in the design, construction and installation of high-tech exhibition stands and retail salespoint solutions.


Notes to editors

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EOS Investment Management
EOS Investment Management Ltd (EOS IM) is an UK Alternative Investment Fund Manager (AIFM), which promotes to institutional and HNWI (High Net Worth Individual) investors asset classes focused on the European real economy through alternative investment funds. Today EOS IM is active with its funds in the renewable energy and infrastructure, private equity and fund of funds sectors.

Issued by EOS Investment Management Limited, of 67 Grosvenor Street, Mayfair, London, W1K 3JN, registered in England and Wales, company no. 9259578, authorised and regulated by the Financial Conduct Authority number 657756. This document is produced for information purposes only, does not constitute a formal solicitation and is not an offer to buy or subscribe for securities. Applications for shares in a fund may be made by the relevant eligible potential investors and only on the basis of, and using the application form contained in the relevant prospectus.