Black Toro exits steel producer Irestal

Alessia Argentieri
15 June 2020

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Black Toro Capital has sold its 43% stake in Barcelona-based stainless steel manufacturer Irestal to the founding Boixareu family, who already owned 57% of the business.

Black Toro invested €40m in Irestal in June 2015, following an extensive restructuring plan undertaken by the company after the financial crisis. The business had sold off its subsidiaries in Ukraine, the Czech Republic and Slovakia in 2011, and refinanced its senior debt two years later.

The investment deployed by Back Toro was structured as a €10m working capital injection, with the remaining €30m used to acquire debt at a discount from the company's creditors. The debt was subsequently converted into equity. Black Toro also acquired a minority stake owned by Spanish GP MCH Private Equity.

Under Black Toro's ownership, the company increased its revenues, expanded its business internationally and became profitable again following a period of negative EBITDA, the GP told Unquote.

Previous funding
MCH backed Irestal in November 2000 via a growth capital investment from MCH Iberian Capital Fund I. The company used the capital to expand its business both in Spain and abroad.

Subsequently, MCH, alongside the Boixareu family and Asian investment firm Tsingshan, provided an additional €35m in growth capital to the company in July 2010. The funds were primarily used to build a new plant in Shanghai, China. MCH and the founding family deployed around €18m, while Tsingshan injected the remaining €17m.

Company
Founded in 1945 and headquartered in Sant Just Desvern, near Barcelona, Irestal produces and distributes stainless steel sheets, plates, tubes, bars and fittings.

The business employs 600 people across service centres located in Barcelona, Birmingham and New York, as well as manufacturing facilities in Galicia and Shanghai.

Irestal serves 14,000 customers and has subsidiaries in Portugal, France, the UK, Russia, Poland and the US. It generated revenues of €124m in 2019.

People
Black Toro Capital – Ramón Betolaza (managing partner).
Irestal – Joaquim Boixareu (CEO).