Globalization and the entry of foreign investors continue to be a trend in the Spanish ceramic sector, whose production is mostly concentrated in the province of Castellón. Again, it is the British group Victoria PLC, manufacturer of carpets, number one in the United Kingdom and second in Australia, which stars in a chapter of concentration of large groups: the company has formalized the acquisition of Íbero, tile factory located in l’Alcora.
THE WORLD already advanced in May that Victoria PLC – which is listed on the London Stock Exchange – and finally yesterday it was known that the purchase is official. Thus, the British group is growing with the acquisition of what is already its third tile, because Victoria already has the purchase of ceramic firms Saloni and Keraben, widely recognized in the Spanish sector.
The information was made public yesterday through the London Stock Exchange – London Stock Exchange. The statement explains that the purchase price of the acquisition “is divided into payment at the end and a contingent payment, which will be paid on May 2020, subject to Ibero meeting a specific performance objective .” The final payment represents LTM earnings – last twelve months – multiplied by less than three before interest, taxes, depreciation and amortization (EBITDA) of Ibero and, “assuming that the contingent consideration is paid in full, the purchase price for the acquisition it would represent a multiple of less than five per EBITDA for the 12 months prior to completion.
It should be remembered that the contingent payment refers to “the part of the price to be paid for an element or set of elements whose amount must be estimated, since it is not a fixed amount but a part of it is made dependent on the occurrence or not in the future of certain conditions », according to portals specialized in economics. According to the information, the contingent payment will be made in May 2020 as long as Íbero meets the fixed performance.
The London Stock Exchange recalls that Íbero “is strategically close to the group’s existing Spanish ceramic manufacturers, Keraben and Saloni.” Founded in 1958, it manufactures high-quality porcelain ceramic pieces, which are sold both nationally and internationally. It markets with wholesalers, retail groups and independent stores throughout continental Europe, North America and the Middle East. At the end of last year, Ibero generated revenues of 30.9 million euros and an adjusted EBITDA of 3.1 million euros.
Geoff Wilding, president of Victoria PLC, celebrated that “Íbero is a very high-quality manufacturer and excellently adjusts to our existing Spanish ceramic operations. I am delighted that Victoria has secured this acquisition. According to our acquisition criteria, Íbero is a very good investment in terms of its manufacturing facilities. In addition, there are also some material operational synergies with our Spanish companies that we will see in the next 12 months. These synergies will not incur any significant exceptional costs, ”said Wilding.
MILLIONAIRE INVESTMENTS IN CERAMICS
There are multiple purchase and investment operations that have occurred in recent years in the Spanish ceramic sector, proof of its attractiveness and profitability. And all of them have left behind millionaire movements that have contributed to further internationalize the sector. To name a few, it should be remembered that Ferro bought Endeka for 64 million in 2017. In the operation, the vendors were Alchemy Partners, management team and former creditors.
On the other hand, Peris & Cía and Azulindus & Martí acquired the company Atomizadora a Novogrés e Hijos de Francisco Gaya Forés in 2017. In the case of Keraben, Tensile Capital Management sold the tile to the British group Victoria for 275 million in November of the same exercise. Keraben also sold the firm Construplas for 50 million to MBO / Partenaires, Family Office / Aquasourça, and the management team also in 2017.
Likewise, Lone Star acquired the Esmalglass-Itaca Group from Investcorp for an amount of 605 million euros. Participation and Impulse acquire New Ceramic Products to the firm from Keraben, Caracas, and Azteca. In turn, Avenue Capital acquires 100 percent of Rocersa in 2018 and Obinesa (Mosaiq) sells Saloni to the Victoria group (owner of Keraben) for 97 million in August last year. Finally, SK Capital Partners acquires Halcón Cerámicas in 2018.
The data reveals that the Spanish tile is an export sector, innovative and attractive to foreign companies. This follows from the large list of commercial operations registered in the ceramic sector.
And it is the first European producer and the second-largest exporter in volume worldwide. But on the other hand, energy is one of the main workhorses for companies and undermines its competitiveness with respect to other competitors, since in Spain prices are higher.