Izo, an Italian producer of veterinary medicines and vaccines, has attracted an offer from the Italian private equity firm Yarpa and other financial firms, sources close to the matter said.
Milan based M&A boutique firm Klecha and Co is assisting the vendor and talks are gaining momentum, said the sources.
Izo was founded in 1968 by the Istituto Zooprofilattico della Lombardia e dell’Emilia Romagna, a research centre for veterinary science. Pietro Morini, an Italian businessman, has acquired the whole company through stake building over the years.
The company is selling a majority stake through a growth capital transaction that would take place without any leverage. Morini would allow an investor to take the majority of the business by selling part of his shares for cash and diluting his holding with a capital increase.
Izo has revenues of EUR 16m, a 20% EBITDA margin, equity of EUR 8m and debt of EUR 10m due to investments made by the company.
Izo, Yarpa, and Klecha and Co declined to comment.