Portobello Capital backs USA Group

Alessia Argentieri
17 January 2020

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Spanish GP Portobello Capital has acquired a majority stake in auto components manufacturer USA Group.

Unquote understands that the deal gives the company an enterprise value of around €50m, which equates to 7x its 2019 EBITDA.

Portobello acquired an 80% stake in the business, while Spanish venture capital house Easo Ventures, alongside other co-investors, bought a 10% stake. The management, led by CEO Mikel Uribe, retained the remainder.

Unquote understands that the GP invested an equity ticket of around €20m via Portobello Capital Fondo IV, which closed on €600m in December 2017, surpassing its €570m hard-cap. The fund is now around 60% deployed.

In addition to the equity from the fund, debt financing was provided by Banco Santander. Unquote understands that the debt package was composed of €20m in credit lines and €10m in capex lines to finance future add-ons and further investments.

Portobello intends to support the company's organic growth, consolidate its market position in Spain, and invest in new machinery and product development.

Unquote understands that the GP also plans to pursue a buy-and-build strategy by acquiring four or five companies across Spain and the rest of Europe in the coming months, with the aim of building a platform in the metal parts production industry. Following this strategy, while also boosting the company's organic growth, Portobello expects USA Group to reach EBITDA of €10m and revenues of €50m in 2020.

Company
Based in Mallabia, in the Basque region, USA Group specialises in manufacturing precision metal components for the automotive sector, primarily sensors, and security and control system parts. The company generated EBITDA of €7m from revenues of around €40m in 2019.

People
Portobello Capital – Juan Luis Ramirez (founding partner).
Easo Ventures – Pedro Muñoz-Baroja (director).
USA Group – Mikel Uribe (CEO).

Advisers
Equity – Norgestión (corporate finance); EY (financial due diligence); King & Wood Mallesons (legal).
Company – Alantra (corporate finance); Deloitte (financial due diligence); BSK Legal & Fiscal (legal).