(Alliance News) - Bialetti Industrie Spa announced Tuesday that it has signed a framework agreement with the company Illa Spa for the sale of the business unit consisting of the complex of assets functional to the procurement, distribution and marketing of "Aeternum" brand products.

The acquisition by Illa will take place in two stages: the first will involve Bialetti's contribution of the Aeternum business unit to a newly established company, and the second will consist of Bialetti's transfer to Illa or a company designated by it, of the entire share capital of the new company.

In detail, the framework agreement stipulates that Illa will pay Bialetti, as consideration for the sale, not including working capital, EUR3.8 million on the execution date, set for July 20, 2023, of which EUR500.000.00 already paid as a deposit; a further amount of a maximum of EUR1.5 million by way of earn-out will be paid upon the achievement of specific targets in terms of total revenues and Ebitda achieved by Bialetti, the newly established company and Illa during the financial year 2023 against the marketing of the "Aeternum", "Junior" and "Morenita" branded products.

Based on Bialetti's accounting results for the year ended Dec. 31, 2022, the Aeternum business unit generated indicatively ? in that year ? gross revenues of about EUR13.1 million, of which about EUR12.3 million was generated by the sale of "Aeternum" brand products and about EUR800,000 was generated by the sale of "Junior" and "Morenita" brand products.

Illa, Bialetti points out, will meet the economic commitments arising from the transaction by using the proceeds from the subscription of the convertible bond referred to in the investment agreement signed with Negma Group Investment Ltd on January 5, 2023.

"The transaction," reads a note from Bialetti, "is part of the broader cookware business divestment project that Bialetti initiated back in 2022 with the sale of the Turkish-registered company Cem-Bialetti Ev ve Mutfak E?yalar? Sanayi ve Ticaret A.?, operating in the cookware and kitchen accessories business to Fetih Alüminyum Sanayi ve Ticaret Limited sirketi, which was finalized on December 21, 2022."

Bialetti Board Chairman Francesco Ranzoni commented, "We are very pleased to announce the successful completion of this important strategic sale. An operation, already envisaged in the 2020-2024 Business Plan, which confirms the precise direction of our work and the constant focus towards the achievement of the set objectives. The divestment of the "Aeternum" brand will further enable the Group to focus on its strategic and business priorities: consolidating Bialetti as a relevant brand in the coffee world and sustaining a strong push to internationalize the brand. We will ensure a smooth transition, giving all stakeholders serious continuity of the business, sales and marketing activities, and all operations."

Illa's CEO Pierpaolo Marziali commented, "The transaction announced today is crucial for the completion of our company's relaunch path. Equipping Illa with an additional prestigious brand, well known in the industry, will increase market share by positively impacting the company's turnover due to the fact that, that of the branch, over the last three years, has been between EUR12 and EUR16 million. We are convinced that this transaction will put Illa in the conditions to consider the crisis resulting from the loss of the historical client IKEA definitively overcome."

Bialetti Industrie closed Tuesday up 4.7 percent to EUR0.24 per share while Illa finished flat at EUR0.087 per share.

By Chiara Bruschi, Alliance News reporter

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