Suma Capital-backed CTC acquires OCA

The company was introduced to OCA by Suma, which knew the firm through its network of contacts. CTC was impressed by the company's experience in the iron and steel sector, which spans more than 20 years. Though challenging, it believes the sector could benefit greatly from outsourcing services.

CTC is currently studying a further five acquisitions, with a view to extending its services and geographic reach. The first of these is likely to be completed by the end of 2011. Suma is negotiating with Spanish banks to secure a €10m credit line to finance these deals.

For the acquisition of OCA, legal advice was provided by Ana Sagnier at Bufete Castilla, while Miguel Montero at KPMG conducted financial, tax and workforce due diligence.

OCA, which specialises in logistics outsourcing for this sector, was owned up until CTC's acquisition by the De la Sotilla family. It was founded in 1992 and consists of the Oca Mantenimiento and Pirer Trade subsidiaries. The company, which employs 40 people, has a turnover of around €3m and an EBITDA of €300,000.

Strategic local acquisitions of medium-sized companies have been part of CTC's business plan since Suma took a 75% stake in the firm as part of a buyout last December. The private equity firm said at the time that it had seen a growing demand for CTC's solutions and that consolidation opportunities existed in the highly fragmented Spanish market. The deal valued CTC's equity at €15m, while management retained a 25% shareholding.

Barcelona-based CTC provides outsourcing services to the industrial and logistics sectors, under the management of CEO Juan-Cruiz Alcalde. It was founded in 1995 and employs a staff of more than 1,500. The company generated revenues of €40m and an EBITDA of €2.6m last year and is targeting a turnover of €50m and profits of €3.3m this year. By 2015 it expects these values to rise to €100m and €7m respectively.

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