Italian Wine Brands, a wine company listed on the Euronext Growth Milan of the Italian Stock Exchange, announced on December 30th it had acquired 85% of the share capital of Enovation Brands Inc., a historic company based in Miami and specialized in the import of Italian wines on the territory North American.

The equity value agreed between IWB and the sellers amounts to a total of USD 22 million, which corresponds to an equity value for 100% of the company of USD 25.9 million. The enterprise value, equal to USD 26.0 million, on the other hand, corresponds to a purchase valuation multiple EV / Ebitda adjusted buyside equal to 8.1x. Enovation is 45% owned by the brothers Giovanni and Alberto Pecora, co-founders and operational managers of the company, and 55% by Norina Srl, a financial company belonging to the four branches of the Pizzolo family.

In the period between June 2020 and June 2021, Enovation achieved a turnover of USD 32.2 million (with 82% of sales revenues made in the US and 18% in Canada), with an Ebitda of USD 3.2 million, and a net book profit of $ 3.4 million.

In detail, IWB has signed two sales contracts: one for the entire stake held by Norina of the Pizzolo family in the capital of Enovation, equal to 55% of the same (transaction with related parties, being Giorgio Pizzolo vice president of IWC and Marta Pizzolo director); and a second contract to acquire 30% ownership of the Pecora brothers, who, following the completion of the transaction, will keep a 15% stake.

The execution of the contracts is subject to the occurrence, by 30 April 2022, of certain conditions precedent.

Through the integration of Enovation, IWB will have direct access to the American market, which is the main outlet market for Italian wines abroad (estimated value of Eur 1.8 billion in 2021).

The transaction also confirms IWB's propensity for both organic and external growth, this being the fourth transaction concluded in less than four years after Svinando.com, Raphael Dal Bo AG, Enoitalia Spa.

Alessandro Mutinelli, president of IWB, recalled that "this is IWB's second overseas acquisition, after Raphael Dal Bo in 2020. Two key markets (USA and Switzerland) for Italian wine and for IWB, with further growth potential unspoken".