teamOn Corporate Finance advises on the sale of Gamarra S.A. to Vergara Performance Fund

Gamarra S.A. The company, with headquarters in Vitoria is dedicated to the manufacture of low-alloy carbon steel castings for the rail and transport sector, exporting around 90% of its production, mainly to other European countries. Gamarra S.A. was founded more than 70 years ago and currently employs 75 people. The…

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Los inversores vuelven a creer en España

Het Financieele Dagblad, el diario económico más importante de Países Bajos, ha publicado un artículo sobre la recuperación del interés de las empresas internacionales por invertir en España. Con el significativo título de “Los inversores vuelven a creer en España”, el diario señala que “el malestar económico es parte de la historia. España de nuevo es interesante para los inversores extranjeros”. El diario señala que hace un mes la empresa Renault anunció buenas noticias para España. En el año 2014 quiere expandir su producción, lo que supondrá un aumento de 1.300 puestos de trabajo. El fabricante sí tenía unas exigencias: los nuevos empleados recibirán un contrato por 18 meses y de vez en cuando tendrán que trabajar en días festivos y fines de semana sin recibir una compensación extra. La información de Het Financieele Dagblad destaca el ajuste salarial y las reformas laborales que se están produciendo en la economía española. “Desde el comienzo de la crisis el coste de la mano de obra por unidad de producto ha descendido un 6% con respecto a la media europea”. La moderación salarial hace que España sea uno de los países más interesantes para invertir, señala FD citando a Ignacio de la Torre, economista del prestigioso IE Business School en Madrid. No solamente Renault, también la empresa Ford se ha dado cuenta de esta situación. Hace poco este fabricante de automóviles decidió cerrar su fábrica en Genk (Bélgica) para parcialmente trasladar su producción a Almussafes, en donde posiblemente se crearán 15.000 puestos directos e indirectos de trabajo. “Un empleado belga cuesta dos veces más que un español”. Asimismo los empresarios holandeses redescubren España. Marco Hulsewé, de Team On Investments en Barcelona, indica que los próximos tres años son el momento oportuno de empezar negocios en España. “España se encuentra en la fase final del doble bache, y la nueva legislación laboral y los sueldos bajos surtirán mucho efecto”. Antoni Zabalza, de Ecros, una de las empresas químicas más importantes España, piensa que los sueldos tendrían que disminuir entre un 8 y un 16% más. La Asociación Española de la Banca no menciona porcentajes pero si enfatiza la necesidad: “Hay que hacerlo mejor que nuestra competencia alemana y eso conlleva una adaptación del sueldo”. Los inversores no deben desanimarse por las noticias pesimistas en la prensa, dice el catedrático de la Torre, añadiendo: “España dispone de todo para poder ser la fábrica de Europa”.

teamOn attends Conxemar trade fair in Vigo

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teamOn attended the trade fair that took place in vigo from 3rd to 5th of October.
The International Frozen Seafood Exhibition (CONXEMAR) serves as the meeting point for the entire processing sector: wholesalers, Importers, Exporters, Transformers, Manufacturers, Distributors, Cold storages, Machinery, Auxiliary Industry (cooling, packaging, plastics, etc.) The exhibition is regarded as one of the two most important ones of this sector in the world.

teamOn takes part in the ACS Partners annual conference in London

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teamOn took part in the ACS Partners annual conference that was held in London on June 15th. ACS’ purpose is to make money together via cross border deals belonging to a trustworthy international M&A network.
teamOn’s Managing Partner, Marco Hulsewé attended the conference where M&A firms from United Kingdom, United States, France, Poland, South Africa, Sweden or Spain met and could introduce themselves on their practice and core focus as well as deal presentations.

teamOn: “Private equity kickstarting consolidation in Iberia’s family-owned seafood sector”

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Excerpts from the Article published in Undercurrent News

February 28, 2017, 9:02 am
Matilde Mereghetti

Investments last year from private equity firmare kick- starting consolidation in the Spanish seafood sector and supply countries in Latin America and Africa, which will likely then be continued by industry players, sources told.

Undercurrent News.
Three private equity firms, Portobello Capital, GED Capital Development and MCH Private Equity.

Portobello snapped up a majority stake in Iberica de Congelados (Iberconsa) and continues to manage Spanish surimi producer and seafood processor Angulas Aguinaga, while MCH has bought the Portuguese cod processor Grupo Brasmar. Moreover, GED has bought Discefa, a Spanish producer and distributor of frozen octopus.

“The global rise in fish protein consumption is a key driver for the ongoing consolidation trend and for further acquisitions in the sector, which will lead the Spanish seafood industry to fully consolidate in the coming five years,” Marco Hulsewe, managing partner at M&A boutique TeamOn, told Undercurrent.

TeamOn advised the owners of Discefa on all aspects of the sale process and deal closing with GED and Oquendo, another fund.

“[Seafood] demand is outpacing production. Consolidation of the Spanish seafood sector offers good opportunity, as prices are still relatively cheap compared with other sectors and most companies are still family-owned and need to expand their business internationally,” Hulsewe also pointed out.

This type of family-owned, mid-sized company has great potential, Hulsewe said.

According to Hulsewe, TeamOn — which is really focusing on becoming a leader in advising on seafood deals — is working on several deals in the Spanish sector likely to complete this year.

Last June, GED acquired 73% of Galician octopus producer Discefa. The deal also involved another fund, Oquendo, with a mixed structure of equity and mezzanine debt.

Discefa, which has grown sharply in recent years, plans to increase its revenue, taking advantage of the booming demand for octopus in the US, said Centelles, a partner at private equity firm GED.
Octopus has become very popular with millennials in the US, and is increasingly found on small plate and tapas menus, as well as becoming mainstream as an appetizer.
GED plans to consolidate Discefa’s business in the domestic market, as well as to enhance and support its international expansion.
The firm ́s turnover in 2016 reached €65m in 2016 and is expected to total €68m in 2017.
At present Discefa sells about 9,600t of frozen octopus per year. Discefa’s plant capacity totals 12,000t per year at present, which will be increased to 14,000t, Centelles said.

The efficiency upgrades that will be carried out at the plant aim to support the planned expansion of the firm’s international sales.

“The main objective, we understand, for Discefa is boosting international sales, particularly in north America and northern Europe as well as Spain and Italy,” Hulsewe of TeamOn, who advised on the sale to GED, added.

Hulsewe also pointed out that octopus availability can change from year-to-year. But, in general, octopus has very good adaptability to changes in climate, like global warming. This was highlighted as an advantage during the sale.

The Spanish firm, which specializes in two main product lines — frozen octopus and frozen cooked octopus — also plans to further increase its sales in the retail sector. In order to do so, it will diversify its range of frozen cooked octopus products, introducing new cuts and packages.

“We will increase profit margins and expand Discefa’s client portfolio in the high-quality retail sector,” Centelles said.
Hulsewe said that the exit timescale of GED in Discefa was confidential. He added that, in general, private equities’ exit time is around five-to-seven years.

Full article available at: https://www.undercurrentnews.com/2017/02/28/private-equity-kickstarting-consolidation-in-iberias-family-owned-seafood-sector/