Bialetti has been struggling for some years. In particular, it has had to contend with competition from capsule systems and other espresso machine manufacturers. According to media reports, the company has more than €100m in debt and overdue tax payments to the Italian state.
These octagonal coffee makers were developed in the 1930s by founder Alfonso Bialetti (1888-1970). The company that bears his name also sells electric coffee makers and other kitchen utensils, whilst the brand has its own shops in many Italian cities.
On Wednesday, 79% of the shares held by the family were bought by the Luxembourg fund Nuo Capital for €53m. There were two transactions:
- The first concerned a purchase agreement with Bialetti Investimenti S.P.A. and Bialetti Holding S.r.l., both owned by Francesco Ranzoni (chairman of the board of directors of Bialetti Industrie S.P.A.), for 59% of Bialetti’s capital, i.e., 91.3m ordinary shares, for €47.3m, of which €18m will be deferred via a so-called vendor loan agreement.
- The second agreement was with Sculptor Ristretto Investment S.à r.l., for a further 19.56% of the share capital (30.2m shares) for €5.73m.
After closing in June, a takeover bid will be launched to acquire the remaining shares at €0.467 per share.
The transaction is part of a plan to refinance Bialetti’s debt, as part of a restructuring agreement signed in 2021, with the aim of fostering the group's growth.
It includes: a junior loan of €30m by Illimity Bank and AMCO, in the form of debt compensation; a senior loan of €45m (plus a potential €5m) granted by a banking pool led by Banco BPM; and a capital contribution of €49.5m from Nuo Octagon. Nuo has already received commitment letters from its shareholders for a total of €71m, guaranteeing the financing of the buyout.
Behind the fund is Stephen Cheng. Born in New York, Cheng, grandson of Hong Kong shipping magnate Yue Kong-Pao, was educated at Eton and then Harvard, where he studied photography and film history (and took classes with the American photographer Nan Goldin). In 2015, Cheng founded Empty Gallery, a unique art space in Hong Kong designed as a “black cube,” dedicated to immersive, experimental and sensory art. The space stands out for its dark and introspective atmosphere, offering an alternative to traditional galleries, and until now it had remained more in the realm of art.
This article was originally published in .