KKR buys cement and paper business of Alfonso Gallardo

The GP's total capital injection was in excess of €225m, according to a source, and was completed via KKR's Special Situations Group arm.

The GP is involved in a refinancing of Alfonso Gallardo, alongside the group's major creditor, providing senior secured facilities for the cement arm and the steel and distribution business. The latter division has not changed ownership.

Both divisions will also receive two subordinated PIK facilities, co-financed by KKR and the group's major bank creditors. The plans will enable the firm to reduce its debt by €500m.

KKR opened a Madrid office earlier this year, led by Jesus Olmos.

Company
Alfonso Gallardo is a steel-making corporation based in Spain. The company is headquartered in Jerez de los Caballeros and has factories across the country. The group's divisions include paper, cement, an oil refinery and electroweld mesh.

As of 2013, Papresa and Cementos Balboa had 214 and 104 employees respectively, with revenues of €133m and €20m.

People
Jesus Olmos is head of KKR's Madrid office.

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• Topics
• Southern Europe
• Industrials
• Buyouts
• Spain
• KKR