Garnica sponsor ICG targets November for sale launch

The vendor has delayed the process in order to build up visibility on its 2021 financial results, according to one of the sources. William Blair is the sell-side adviser, as reported in the Spanish press.

Garnica, which produces plywood for use in the transportation, construction, furniture and packaging industries, is expected to be marketed based on EBITDA in the low EUR 40m range, the two sources and a third source familiar with the matter said.

The sell side is expected to normalise its EBITDA figure during the sale process, adjusting for the recent spikes in energy and raw material prices, one of the sources said. The company generates a turnover of around EUR 225m, according to its website.

According to press reports, Garnica could be valued at EUR 400m, although one source said that a 7.5-8.5x EBITDA multiple would be more logical given the need for high capex to grow the company.

Potential bidders are, however, questioning the effects of inflation on the business and the wider plywood sector, given that inflation across the value chain – ranging from raw materials to energy, shipping and transport – have made it difficult to create financial budget and forecasting this year, one source said.

ICG declined comment. Garnica and William Blair did not respond to requests for comments.

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