Koinos Capital is pleased to announce the acquisition of a majority stake in Ultrabatch, a renowned Italian company specializing in agritech and the production of additive masterbatches for plastics. This transaction involves the sale of shares held by founding partners Pietro Csergo and Andrea Moretti, alongside the simultaneous reinvestment of Diego Moretti, the son of Andrea and manager of Ultrabatch.
Aligned with its entrepreneurial approach and commitment to establishing sectoral centers of excellence, Koinos Capital’s entry into Ultrabatch is driven by the objective of accelerating the company’s growth. This strategic move aims to create an integrated operator poised to become a leader in various masterbatch segments globally. This expansion includes organic growth and potential acquisitions, both domestically and on the international stage.
Founded in 2003 in Castano Primo, Milan, Ultrabatch has emerged over the years as a key player in masterbatch production used in agriculture (greenhouses, mulching, as well as nets and monofilaments) and the industrial sector (packaging, artificial turf, cables, and compounds). Masterbatch, characterized by a high concentration of additives, enhances the performance of virgin polymers, offering specialized features such as UV protection, thermo-oxidative degradation prevention, and reduced electrostatic charge accumulation.
With a market share in Italy’s additive masterbatch segment of approximately 15%, making it a leader in a fragmented industry, Ultrabatch reported a turnover of over 30 million euros in 2022, growing at a CAGR of 10% since 2017. Already well-engaged with international markets, Ultrabatch currently exports approximately 40% of its production, especially to Europe and North Africa.
Francesco Fumagalli, Founding Partner of Koinos Capital, remarked, “The acquisition of Ultrabatch, our fourth since inception, is strategically significant and marks our entry into an innovative market with highly promising growth prospects, particularly in the field of additive masterbatches across various high-potential segments. Ultrabatch perfectly embodies the qualities we seek in a company: innovation, deep expertise, specialization, and the potential for international expansion. This marks the beginning of a clear development path, in collaboration with the entrepreneurs who have guided the company with great vision thus far, aimed at broadening Ultrabatch’s reach into other sectors through both organic growth and external opportunities, with the goal of creating an internationally renowned Group.”
Ultrabatch currently operates in a rapidly expanding sector, especially in applications related to agriculture, driven by the increasing adoption of innovative products that enhance crop productivity and mitigate the effects of climate change. Furthermore, evolving consumer demand and a growing focus on sustainable products are expected to have a profoundly positive impact on the industry, which is poised for further growth in the coming years. In general, the broader European market for additive and non-additive masterbatches, encompassing all industrial applications, holds significant growth potential. In 2021, the additive segment alone was valued at $1.8 billion and is projected to reach $2.2 billion by 2026, while the entire masterbatch market, including all applications, is expected to grow from $5.7 billion in 2021 to $6.5 billion in 2026.
Koinos Capital received financial advisory support from KPMG, tax assistance from Russo De Rosa Associati, legal counsel from Alpeggiani Studio Legale, and conducted business due diligence with the assistance of Goetz Partners. The transaction was financed by Banca ICCREA. The Koinos Capital team responsible for managing the transaction includes Francesco Fumagalli, Marco Morgese, Tommaso Meregalli, and Michele Dal Pozzo.