La , the Spanish plywood leader, is frozen to analyze the impact on the business of the new macroeconomic environment, the rise in inflation and the crisis generated by the Russian invasion of Ukraine. As the Economist from financial sources has learned, the British fund ICG (Intermediate Capital Group) has decided to park the competitive process -indefinitely- after having received several non-binding offers from the company, which expects to widely exceed 50 million ebitda this anus.
, which coordinates the process together with the law firm, has so far received the first non-binding offers. Among the best positioned candidates to acquire Garnica Plywood are the Arab sovereign wealth fund Mubadala, owned by the Government of Abu Dhabi, the US manager HIG Capital, and the PAI Partners and Bridgepoint funds, also with extensive investment history in Spain. The preliminary valuations of the industrial group, world leader in high added value poplar plywood, started at 500 million euros, which implies a multiple of about 10 times EBITDA.
Impact of the conflict
According to the sources consulted, Garnica is managing to weather the impact of the supply crisis and the rise in energy. Despite the high uncertainty, the invasion of Ukraine represents an opportunity to gain market share due to the many customers who have reduced their purchases of plywood from Russia.
Garnica, born in 1941 as a sawmill in Baños de Río Tobía (La Rioja), is a world leader in the production of poplar plywood, with a presence in more than 50 countries and more than 600 clients. The company mainly produces industrial plywood panels, which account for more than 90% of its turnover, with a workforce of more than 1,100 workers. Hand in hand with the British fund ICG, the group has also grown through acquisitions. In 2018, it bought , specialized in the production of radiata pine boards.
ICG is a minority shareholder of Garnica Plywood, an international benchmark in the production of plywood from sustainable wood since 2016, when it allied with the management team and the founding family to acquire the company from Qualitas. The operation valued the company at around 250 million euros, adding capital (equity) and debt, and d
ICG manages more than 60,000 million euros and has had an office in Madrid since 2004 -led by Jaime Chocrón- offering flexible financing with which it has invested more than 2,000 million euros in our country. Among its recent operations is , with a return of more than two and a half times the investment.
Last year, the British fund together with the founding partner and president of the group, Jesús Cantarero, gave way to Artá Capital, the investment arm of the March family. In Spain, ICG is also a shareholder of the technology multinational Konecta, acquired from the PAI Partners fund and Banco Santander in 2019 together with the management team in a joint investment of 135 million in capital and debt worth almost 182 million.
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