Biolchim

Private Equity Manager (GP)

Case study

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.

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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

PIP is a primary investor in three Chequers Capital funds and Pantheon holds an advisory board seat for each fund. In addition, PIP 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.

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 PIP at a Multiple of Invested Cost (MOIC) of 4.2x and IRR of 36%. The uplift versus the December 2021 valuation was 40%.