ICG buys majority stake in Garnica

Amedeo Goria
19 July 2016

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Intermediate Capital Group (ICG) has acquired a controlling stake in Spanish plywood board producer Grupo Garnica Plywood in a deal reportedly valuing the business at €200m.

The company aims to use the capital injection to boost its international expansion via strategic acquisitions.

ICG invested in the business through its ICG Europe Fund VI, which held its final close on €3bn in July 2015, exceeding its €2.5bn target.

ING Bank provided a credit facility to support the transaction.

Previous funding
In December 2006, Qualitas fully acquired a majority stake in the business from the founding family.

Subsequently, an investor consortium led by the Torrealba and Bezzares family office acquired a controlling stake in April 2014. As part of the deal, the firm's management and existing shareholders re-invested to retain a minority stake in the business. According to unquote" data, Qualitas reaped a 3.7x money multiple on the sale.

Company
Established in 1973 and headquartered in La Rioja, Garnica manufactures and sells plywood boards for application in wholesale, marine vessels, caravans, flooring, interiors, coating, buildings and transport. The business has five production plants across Spain and France and employs 750 people.

The company generates 91% of its sales outside Spain and forecasts a turnover of €180m in 2016 against €111m in 2013.

People
Intermediate Capital Group – Daniel Aymerich (managing director).
Grupo Garnica Plywood – Pedro Garnica (founder, chair).

Advisers
Equity – Allen & Overy (legal).
Company – Cuatrecasas (legal).