Bluegem Capital Partners, a pan-European equity fund specialising in investments in the mid-market consumer staples brands segment, has completed an ESG-linked refinancing package for Dr Vranjes, the Florentine company founded in 1983 which has become a market leader of home fragrances.
Oldenburgische Landesbank (OLB), the German bank with assets in excess of EUR20 billion, of which the American investment fund Apollo Global Management is a shareholder, has signed a EUR24.5 million refinancing package with Dr Vranjes which has a margin ratchet linked to the achievement of ESG objectives.
The first one is an environmental objective that focuses on the use of fully recyclable plastics in the production of packaging, with progressively higher targets year after year, starting from a 66 per cent threshold set for the first year. The second one is a social objective which sets a threshold for the proportion of women in the company’s management to be at least 40 per cent, almost double that of the overall representation of women among managers in Italy (source: “IV National Report on female entrepreneurship produced by Unioncamere”).
Dr Vranjes was assisted by DLA Piper (legal advisor), PwC (debt advisor), New Deal Advisors (financial DD), Gargano (legal DD), Gattai (tax advisor). OLB was advised by Ashurst (legal advisor).
Based in Florence, Dr Vranjes was founded in 1983 and with its fragrances created by Master Perfumer Paolo Vranjes has captivated enthusiasts around the world. Already famous for its home fragrances, Dr. Vranjes has expanded its range to scented candles, car perfumes and most recently also to personal care. It exports to 70 countries from its Sesto Fiorentino facility, with a strong presence in Asia and online sales accounting for 30 per cent of global revenues.
Dr. Vranjes is growing rapidly, it has 121 employees and will close 2021 with a turnover of EUR32 million. It is also on track to reach a turnover of EUR40 million and an Ebitda of EUR15 million in 2022. This growth trajectory is the result of organic growth without any acquisitions. The company closed its 2016
accounts with EUR10 million in turnover and an Ebitda of EUR3.5 million achieved by 40 employees, before being bought by Bluegem in 2017.
Emilio Di Spiezio Sardo, co-founder of Bluegem, says: “Sustainability is a fundamental value for our group. We are proud to be among the first in the sector to sign an ESG-linked loan promoting social and environmental good while delivering potential returns to investors. This initiative represents a key milestone in the process of continuous improvement on the issues that are central to our value creation process – sustainability, international expansion and digital transformation.”
Lapo Favilli, Bluegem ESG Officer, adds: “With the fast-paced nature of today’s world, we aim for our ESG approach to be forward-looking and evolving. The ESG-linked loan for Dr. Vranjes is the latest step in the process of integrating sustainability into Bluegem’s operations as well as the operations of our portfolio companies. We are dedicated to applying Bluegem’s proprietary ESG framework ensuring best practices that benefit the environment and our stakeholders.”