Gordon Brothers Supports JSP Restructuring with €5M Investment in Machinery & Equipment of 4 Canarian Plants
Date October 21, 2020
Gordon Brothers, the global advisory, restructuring and investment firm, announced today it has agreed to purchase the Machinery & Equipment (the “M&E”) of the four plants of Jose Sanchez Peñate (“JSP”) in the Canary Islands. The M&E will be leased back to the company.
Founded in 1964, JSP is one of the largest food groups in the Canary Islands. The Group’s primary business is the production of dairy products from its two factories located in Tenerife. The Group also manufactures and supplies coffee and bakery products from its plants in Tenerife and Gran Canaria. JSP is a key supplier to the local food retail and foodservice markets with well-known brands like Millac, JSP and Celgán.
The business of JSP has been negatively affected by the COVID-19 pandemic and its impact on the Canarian tourism industry and economy. The Group has entered into a restructuring agreement with its lenders, which are mainly Spanish banks. In addition to the refinancing of the existing debt, the restructuring agreement includes the injection of new money into the company by Gordon Brothers – in the form of sale and lease back of industrial M&E – and the banks. The new funds will be applied to finance the Transformation Plan of JSP.
“JSP has a strong market position and very well-known brands in the Canary Islands but, unfortunately, it has been suffering some difficulties over the past years and now is hardly impacted by the current COVID-19 circumstances. We believe the Group’s plants are good and valuable industrial assets” commented Álvaro Cobo, Managing Director, Spain & Portugal at Gordon Brothers. “This transaction fits well with our investment strategy in asset heavy companies in special situations. We can provide liquidity solutions against the value of the assets in complex restructuring situations”.
Aridani Ramírez, Chief Financial Officer of JSP, said, “Gordon Brothers has proved their expertise in the industry and has understood very quickly the value of our industrial plants. They have been instrumental to reach a restructuring agreement with the banks in a quick and efficient manner. Gordon Brothers’ acquisition and lease back of the M&E will provide the majority of the funds needed to finance our Transformation Plan and we are thrilled to partner with them”.
Gordon Brothers has operated in Spain since 2012 and opened a new office in Madrid in 2020.
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About Gordon Brothers
Since 1903, Gordon Brothers (www.gordonbrothers.com) has helped lenders, operating executives, advisors and investors move forward through change. The firm brings a powerful combination of expertise and capital to clients, developing customised solutions on an integrated or standalone basis across four service areas: valuations, dispositions, operations and investments. Whether to fuel growth or facilitate strategic consolidation, Gordon Brothers partners with companies in the retail, commercial and industrial sectors to put assets to their highest and best use. Gordon Brothers conducts more than $70 billion worth of dispositions and appraisals annually. Gordon Brothers is headquartered in Boston, with 25 offices across five continents.
About José Sanchez Peñate
José Sanchez Peñate, S.A. is an industrial group of family origins, founded by Mr. José Sánchez Peñate in 1964 and dedicated to the food sector. Over the last fifty years, the company has undergone significant industrial development, which has enabled it to have factories in Gran Canaria, Tenerife and Madrid, and branches in all the Canary Islands.
Kreab is a global advisor in Communication, Reputation and Public Affairs. Founded in Sweden in 1970, it has a presence in the markets of Europe, Asia, Africa and Latin America. With a portfolio of approximately 500 clients in 25 countries, the firm advises on positioning, visibility, and corporate reputation, with the aim of increasing its capacity of influence and business generation.