Grupo Bimbo to wholly acquire Oaktree's Panrico

Kenny Wastell
23 June 2015

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Oaktree Capital has signed a preliminary agreement to wholly exit Spanish pastry and bread company Panrico to Mexican trade buyer Grupo Bimbo.

A statement issued by bakery business Grupo Bimbo confirmed the deal is subject to regulatory approval and the completion of due diligence.

The proposed sale would come almost two years after Panrico appointed economist and lawyer Carlos Gila as first executive to oversee its restructuring. At the time, the company was reported to have suspended the payment of salaries to its 4,050 employees and was expected to cut around 1,900 jobs.

Oaktree Capital became the majority shareholder in Panrico in 2010, following a troubled period for the Spanish company. The US private equity firm acquired 20% of the business's debt, acquiring a further 24% stake in the firm.

Apax Partners originally backed the €900m buyout of the business in 2005 in a deal comprising a €650m debt and mezzanine package underwritten by Goldman Sachs, ING, Caja Madrid, Royal Bank of Scotland and La Caixa.

In 2010, senior lenders became majority stakeholders in Panrico via a restructuring that saw Apax's share reduced almost entirely. The restructuring was prompted by the business's failure to repay its loans and attract a suitable offer, despite a bid from Permira and interest from Blackstone Group and PAI Partners.