(Yicai) April 17 -- Nuo Capital, an investment fund headed by Hong Kong entrepreneur Stephen Cheng, has struck a deal to acquire Bialetti Industrie, the Italian company famed for its iconic octagonal moka coffee pots.

Nuo Capital will buy a 78.6 percent stake in Rome-based Bialetti for EUR53 million (USD60.4 million), the two companies announced yesterday, adding that the deal is subject to regulatory approval.

Following completion of the transaction, which is expected by the end of June, Nuo Capital will launch a mandatory takeover offer for the remaining shares for no less than EUR0.467 (53 US cents) each, with plans to eventually delist the company from Euronext Milan.

Bialetti’s shares [BIT: BIA] were trading 0.2 percent higher at EUR0.45 apiece as of 2.03 p.m. local time in Milan today.

Founded in the 1930s, Bialetti revolutionized coffee drinking habits in Italy and worldwide with its aluminum moka pot, invented by founder Alfonso Bialetti.

A survey in 2010 found that 90 percent of Italian households owned a Bialetti coffee pot, but the company has struggled in recent years, partly due to the hit from the Covid-19 pandemic, but also intense competition from capsule-based coffee machines.

“Today, Bialetti is a stronger company with a clear strategic vision and a globally recognized brand,” said Chief Executive Officer Egidio Cozzi, who will remain in place after the acquisition.

“With Nuo’s support, we’re entering a new chapter full of opportunities,” he said. “We’ll keep investing in innovation, international expansion, and the authenticity of Made in Italy -- always with a deep passion for coffee at the core.”

“Bialetti represents a significant and wonderful challenge for us, setting new growth objectives for a historic brand of Italian culture and tradition,” said Tommaso Paoli, chief executive of Luxembourg-registered Nuo Capital.

“Since our founding in Milan in 2016, we have invested over EUR400 million of private capital in Made in Italy businesses, helping them develop new organizational models while maintaining their independence and identity,” Paoli added.

Editor: Tom Litting