Argos Climate Action Fund acquires Bracchi, a leading company in the transport and logistics sector in Italy. Anima Alternative SGR, Clessidra Capital Credit SGR and the Management co-investors.

The goal is to position Bracchi at the forefront of the sector in terms of offering a green alternative, implementing a clear decarbonization strategy.

Argos Climate Action, a buyout fund focused on the decarbonisation of European SMEs, aims for a CO2 intensity reduction target of 7.5% per year and a direct alignment of the team’s incentives with environmental performance.

Following the announcement of the first closing at the beginning of September, Argos Climate Action, the first European “Grey to Green” buyout fund, today announces its entry into Bracchi, a leader in freight transport and logistics, with a majority stake. The transaction was carried out with the co-investment of Anima Alternative SGR, Clessidra Capital Credit SGR and the Management. The company was acquired from the funds IGI Investimenti Cinque and Siparex.

Founded as a local Italian transport company, Bracchi is now one of the most important logistics and transport operators in Europe, managing tailor-made services in highly specialized niche sectors such as elevators, agricultural equipment and luxury brands. The company is a point of reference for all customers who want to make use of a single interlocutor for any logistical and distribution needs in Italy, Europe and around the world. Bracchi has 650 employees and in 2022 generated a turnover of over € 180 million operating from 7 regional offices and 11 hubs in Europe, while a closure of about € 200 million is expected for 2023.

The Business Plan for the coming years is to expand geographical coverage, acquire new technical know-how in other special logistics niches and expand the customer base. In keeping with the Fund’s mission, which is central to the investment logic and value creation, is the ambitious plan to decarbonise operations, aiming to halve the intensity of CO2 emissions over five years in the Scope 1, 2 and 3 areas.

Supported by the management’s strong desire to initiate an environmental transition, the plan is demand-driven as Bracchi’s main customers are already accelerating the decarbonization of their supply chain upstream and downstream.  It is supported by validated technical solutions in a sector with such a high carbon impact and is based on innovative partnerships related to biofuel procurement.

The new Board of Directors will be chaired by Paolo Scaroni, who will lead the company on its decarbonization path with a strategic focus on innovative biofuels and other sustainable mobility systems.

The transaction was structured with a mix of equity (underwritten by Argos Climate Action Fund, Anima Alternative 1, Clessidra Private Debt Fund), junior financing (provided by Anima Alternative 1 and Clessidra Private Debt Fund) and senior financing provided by BNL and BancoBPM. This is the first milestone in the strategy to extend the Argos Wityu platform beyond the historic mid-market funds. Supported by public institutions, institutional investors and Family Offices, all with deep convictions on the need to actively contribute to climate change mitigation without compromising financial returns, Argos Climate Action is a response to their expectations in the European Mid-Market buyout landscape. In September 2023, Argos Wityu announced the first closing of Argos Climate Action for €120 million, reaching 40% of its initial target.

Lucio Ranaudo, Senior Partner at Argos Wityu said: “We are very proud that Bracchi is the first investment of our Argos Climate Action fund. It is a true Italian excellence appreciated and recognized in Europe with a strong potential for development. Today, together with the management, we are aiming for solid buyout fundamentals by activating a series of initiatives that act as a lever for achieving sustainability goals because in our opinion, sustainability represents a competitive advantage, not a cost”.

Sandra Lagumina, Senior Partner at Argos Wityu added: “Our goal is for Bracchi to become a sustainable European leader in the transport and logistics market. We are therefore ready to provide all our support as shareholders by making available all the skills and experience gained by Argos Wityu in the field of sustainability”.

Mario Fera, Chief Executive Officer of Clessidra Capital Credit SGR added: “We are excited to support Bracchi’s expansion and decarbonisation plan, which is perfectly consistent with the sustainability principles promoted by our fund. This transaction represents the sixth investment of the Clessidra Private Debt fund, and to date we have invested 60% of the capital raised. By working alongside Argos Wityu and Bracchi, we confirm our role as a partner able to provide flexible solutions to support the growth of a company with clear and transparent ESG objectives”.

“Supporting the development of excellent Italian companies such as Bracchi with hybrid capital instruments is fully part of our strategy” commented Philippe Minard and Andrea Cappuccio, respectively Investment Director and Deputy Investment Director of Anima Alternative SGR “We are grateful to Argos Wityu for allowing us to accompany the ambitious decarbonization program designed together with the management team led by Umberto Ferretti”.

Umberto Ferretti, CEO of Bracchi commented: “The transaction just concluded finds the entire management fully satisfied to be able to seize further development opportunities in our business through new strategic levers in full coherence with the change that the sector is experiencing. I would like to thank the IGI and Siparex funds for the trust placed in the management and for guaranteeing the resources that have allowed our company to increase and consolidate its position in the sector”.

Matteo Cirla, Managing Partner of IGI Private Equity and Chairman of Bracchi, said: “IGI Private Equity invested in Bracchi because it understood its enormous potential and believes that even today it has room for growth thanks to the market in which it operates and the quality of the people who work there. The IGI Private Equity Team would like to thank all of Bracchi’s managers, employees and collaborators, in Italy and abroad, for this extraordinary experience of value creation and growth achieved in these years together.”