Portobello in Laulagun MBO

José Rojo
14 January 2016

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Mid-market GP Portobello Capital has fully acquired Spanish bearing and slew ring manufacturer Laulagun Bearings alongside the co-investing management team.

Laulagun's enterprise value remains confidential but Portobello's third fund, used to finance the deal, targets assets in the €50-500m valuation range. The GP's investment was not disclosed either but Portobello Capital Fondo III usually deploys €10-100m equity tickets.

According to an unquote" source, Laulagun came on Portobello's radar as the firm scouted for deal opportunities within the industrials sector. In addition, the GP came to hear of Laulagun via advisory Norgestión, which had been hired by the company.

A limited auction process for the asset was held between October and December 2015; Portobello believes its rapid reaction and proposed bid were key in obtaining exclusivity.

Under the firm's tenure, Laulagun will look to expand internationally and target clients in new markets. The company will continue to be headed by its existing management team, led by CEO Jorge Damián.

Laulagun is the fifth portfolio company for Portobello's third fund, which broke its reported €340m target when it closed on €375m in September 2014. The vehicle, the first to be launched by the GP since its controversial spinout in 2011, raised more than 70% of its commitments from foreign LPs.

Aside from Laulagun, Portobello Capital Fondo III holds stakes in elderly care operator Vitalia Home, smart-city technology business EYSA, frozen seafood distributor Iberconsa and ready-to-eat meal producer Industrias Alimentarias de Navarra. Put together, the vehicle has deployed little under 50% of its capital.

Company
Founded in 1973, Laulagun designs large-diameter bearings and slewing rings for wind power, lifting machinery and infrastructure clients, among others. Headquartered in Olaberria, in the Basque Country, the company operates additional facilities and an R&D site in Idiazabal. According to its figures, 80% of its production is sold to customers abroad.

People
Portobello Capital – Juan Luis Ramírez (partner).
Laulagun Bearings – Jorge Damián (CEO).

Advisers
Equity – Altamar (M&A); PwC (Legal, tax, financial due diligence); DNV GL (Commercial due diligence).
Vendor – Norgestión (M&A, legal).