Gordon Brothers, a global advisory, restructuring and investment firm, agreed to purchase the machinery and equipment of the four plants of Jose Sanchez Peñate (JSP) in the Canary Islands for €5 million ($5.9 million). The M&E will be leased back to the company.
COVID-19 negatively impacted JSP’s business and the Canarian tourism industry and its economy. JSP 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,” Álvaro Cobo, managing director of Spain and Portugal at Gordon Brothers, said. “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”.
“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,” Aridani Ramírez, CFO of JSP, said.
José Sanchez Peñate is an industrial group of family origins dedicated to the food sector.
