Coricelli Negotiates $500M Debt for Deoleo Acquisition

Italian olive oil producer Coricelli is in advanced discussions with a financial consortium, spearheaded by UniCredit, to secure the substantial debt financing required for its €500 million acquisition of Spanish giant Deoleo. This move positions Coricelli as the leading contender to acquire Deoleo, a prominent player in the global olive oil market known for brands such as Carbonell, Hojiblanca, and Bertolli.

The proposed financing package is expected to comprise a significant bank debt component, with UniCredit acting as the agent bank for the syndicate. Market sources indicate that the funding structure may also incorporate a bond issuance, though the precise amount remains under negotiation. This strategic financial arrangement underscores the scale of the transaction and Coricelli's commitment to acquiring Deoleo, which is currently owned by private equity firms CVC and Alchemy.

Coricelli's offer of €500 million surpasses competing bids, including a reported €470 million proposal from Spanish agricultural cooperative Dcoop and an undisclosed offer from Acesur. The Italian firm is reportedly seeking exclusivity in its negotiations with CVC and Alchemy to finalize the deal, although regulatory considerations and potential interest from Spanish entities, as voiced by the Ministry of Agriculture, could influence the final outcome. The olive oil sector, a significant segment within the broader agribusiness industry, is experiencing consolidation as companies seek scale and market share.

The acquisition, if successful, would see Deoleo integrated into Coricelli's operations, potentially creating a formidable force in the global edible oils market. The combined entity could achieve an estimated EBITDA of €100 million, reflecting significant operational synergies. This transaction occurs as Deoleo is executing its 2025-2028 strategic plan, which aims to boost recurring EBITDA by €32 million to €74 million and targets substantial growth in the United States and Northern Europe. The U.S. olive oil market alone is a multi-billion dollar industry, with significant growth potential for established brands.

Coricelli's bid is being channeled through its holding company, Farmers Elite Global, which also owns the Spanish olive oil producer Aceites Abasa. This integration would consolidate production and distribution capabilities. Meanwhile, Dcoop's interest highlights the strategic importance of Deoleo for domestic players seeking to expand their packaging and distribution networks. However, Dcoop's potential acquisition of Deoleo might face antitrust scrutiny, particularly concerning market share in regions like the United States, where its affiliate Pompeian holds a substantial stake.

The sale process, initiated earlier this year with the appointment of William Blair as the financial advisor for the divestment by CVC and Alchemy, is nearing a resolution. PwC is also involved in providing due diligence services to the sellers, while KPMG is advising Coricelli on the transaction. The competitive bidding process and the substantial financing being arranged by UniCredit signal strong investor confidence in the olive oil sector's long-term prospects and the strategic value of Deoleo's brand portfolio and market presence.