Factory plant

Jose Sanchez Peñate

Case Study

By the Numbers

In October 2020, Gordon Brothers agreed to purchase the Machinery & Equipment (the “M&E”) of the four plants of Jose Sanchez Peñate (“JSP”) in the Canary Islands with €5M investment.

JSP had been suffering financial difficulties over past years and were heavily impacted by the COVD-19 pandemic. As a result, the Group were forced into a restructuring agreement with its lenders, a syndicate of 11 Spanish banks. In addition to the refinancing of the existing debt, new money has been provided through the sale and lease back deal of Gordon Brothers a new term loan from the banks. The new funds will applied be applied to finance the Transformation Plan of JSP.

Founded in 1964, JSP is one of the largest food groups in the Canary Islands, Spain. 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.

“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, CFO 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 funds needed to finance our Transformation Plan and we are thrilled to partner with them”.

Gordon Brothers has a proven track record in complex restructuring proceedings, with significant experience across many sectors in Europe and have a deep understanding of the value of assets. Our regional and deep sector expertise allowed us to complete the financing in an accelerated timeframe providing an efficient source of liquidity to the Group.