ACQUISITION ESTABLISHES STRONG NORTH AMERICAN
GROWTH PLATFORM FOR BOZZETTO GROUP
(All figures are in Canadian dollars unless otherwise stated
and are subject to change due to currency fluctuations)
TORONTO, Jan. 3, 2024
/CNW/ - Aimia Inc. (TSX: AIM) ("Aimia"), a holding company
focused on long-term global investments, is pleased to confirm that
its Bozzetto Group ("Bozzetto") subsidiary has closed the
previously announced acquisition of 65% of StarChem S.A.
("StarChem") for $24
million(1), with a potential earn-out of
$12 million(1). The
purchase price was funded entirely from Bozzetto's existing credit
facility and Bozzetto's cash on hand. The executive management team
of StarChem will retain a collective minority stake of 35%.
StarChem, headquartered in San Pedro Sula, Honduras, is a leading manufacturer of
specialty chemical solutions used primarily in preparation, dyeing,
and finishing processes by its large, multi-national textile
industry customers.
Established in 2007, StarChem operates two production facilities
in Honduras. These facilities have
a total installed production capacity of approximately 20,000
Metric Tonnes (MT) per year, with potential for expansion. StarChem
is expected to generate approximately $47
million(1),(2) in revenue for the fiscal year
ending December 31, 2023 and achieve
an EBITDA margin of approximately 12%(2). Honduras is one of the world's largest textile
markets, with a focus on cotton production for some of the largest
U.S. textile manufacturers, including StarChem customers such as
Fruit of the Loom, Hanes, and Gildan. Bozzetto's acquisition
of StarChem expands its geographical presence into the Americas,
fulfilling a key element of its growth strategy.
Phil Mittleman, CEO of Aimia,
commented: "The addition of StarChem to our portfolio underscores
our commitment to growth and excellence in the specialty chemicals
sector. StarChem's manufacturing expertise and strong market
presence in the Americas are key to Bozzetto's strategic expansion
plans in North America."
Roberto Curreri, CEO of Bozzetto,
said: "Our acquisition of StarChem marks a significant milestone in
our over 100-year history. Having closely worked with StarChem
during our multi-year partnership, we are excited and confident
about the synergy and potential this integration brings. StarChem's
well-established customer relationships and production capacity are
integral to Bozzetto's strategic growth, especially in the North
American market."
About Aimia
Aimia Inc. (TSX: AIM) is a holding company that makes long-term
investments in private and public businesses through controlling or
minority stakes. We target companies with durable economic
advantages evidenced by a track record of substantial free cash
flow generation over complete business cycles, strong growth
prospects, and guided by strong, experienced management teams.
Headquartered in Toronto, Canada,
Aimia is positioned to invest in any sector, wherever a suitable
opportunity can be identified worldwide. In addition, we seek
investments that may efficiently utilize the Company's operating
and capital loss carry-forwards to further enhance stakeholder
value.
For more information about Aimia, visit www.aimia.com.
About StarChem
StarChem, headquartered in San Pedro Sula, Honduras, is a leading specialty chemical
solutions producer primarily involved in the preparation, dyeing,
and finishing processes within the textile industry. StarChem,
through its two production entities, Merril and StarChem Honduras,
both of which are located in the San Pedro Sula industrial park,
collectively boast an installed production capacity of
approximately 20,000 MT per
year. The Honduran textile landscape primarily revolves
around cotton, with a predominant focus on t-shirt production,
valuing between US$200-300
million. StarChem's core clientele comprises Honduran
operations of major U.S. textile mill multinationals such as Fruit
of the Loom, Hanes, and Gildan.
(1)
|
Based on USD/CAD of
1.3316 as at January 2, 2024.
|
(2)
|
Based on Fiscal 2023
projections using nine months actuals and three months forecast.
Fiscal Year 2023 ends December 31, 2023.
|
Forward-Looking
Statements
This press release contains statements that constitute
"forward-looking information" within the meaning of Canadian
securities laws ("forward-looking statements"), which are based
upon our current expectations, estimates, projections, assumptions
and beliefs. All information that is not clearly historical in
nature may constitute forward-looking statements. Forward-looking
statements are typically identified by the use of terms or phrases
such as "anticipate", "believe", "could", "estimate", "expect",
"intend", "may", "plan", "predict", "project", "will", "would" and
"should", and similar terms and phrases, including references to
assumptions.
Forward-looking statements in this press release include, but
are not limited to, statements with respect to the potential
earn-out; the timing of closing of the transaction; StarChem's
revenue and EBITDA margin for the fiscal year ending December 31, 2023; the new opportunities for
Bozzetto and StarChem; and Bozzetto's expansion in Mexico, San
Salvador, Guatemala and
other parts of North America.
Forward-looking statements, by their nature, are based on
assumptions and are subject to known and unknown risks and
uncertainties, both general and specific, that contribute to the
possibility that the forward-looking statement will not occur. The
forward-looking statements in this press release speak only as of
the date hereof and reflect several material factors, expectations
and assumptions. While Aimia considers these factors, expectations
and assumptions to be reasonable, actual events or results could
differ materially from the results, predictions, forecasts,
conclusions or projections expressed or implied in the
forward-looking statements. Undue reliance should not be placed on
any predictions or forward-looking statements as these may be
affected by, among other things, changing external events and
general uncertainties of the business. A discussion of the material
risks applicable to us can be found in our current Management
Discussion and Analysis and Annual Information Form, each of which
have been or will be filed on SEDAR+ and can be accessed at
www.sedarplus.ca. Aimia cautions that the list of risk factors
included in such Management Discussion and Analysis is not
exhaustive. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they
are made and we disclaim any intention and assume no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
Non-IFRS Measures
Reference to (i) "Adjusted EBITDA" is the unaudited pro forma
earnings of StarChem before interest, taxes, depreciation,
amortization as well as other income and financial expenses; and
(ii) "Adjusted EBITDA margins" is StarChem's Adjusted EBITDA
divided by its unaudited pro forma revenue. Adjusted EBITDA and
Adjusted EBITDA margins are non-standardized financial measures
that are not calculated or presented in accordance with
International Financial Reporting Standards ("IFRS"). Accordingly,
it may not be possible to compare StarChem's Adjusted EBITDA and
Adjusted EBITDA margins with Adjusted EBITDA and Adjusted EBITDA
margins or other financial measures of other companies having the
same or similar businesses.
In addition, all financial information regarding StarChem
contained in this press release has been derived from StarChem's
unaudited pro forma financial statements which are prepared in
accordance with Honduras Generally Accepted Accounting Principles
("Honduran GAAP"). Aimia prepares its financial statements in
accordance with IFRS. Honduran GAAP differs in certain respects
from IFRS.
SOURCE Aimia Inc.