Portobello Capital has acquired a majority stake in USA Group, a company specializing in the manufacture of precision metal parts mainly for the automotive sector.
USA Group is based in the Basque town of Mallabia in northern Spain. The company manufactures precision metal parts for security and control systems.
Under the terms of the deal, Portobello Capital will hold a majority interest in the USA Group. Mikel Uribe, managing director of USA Group, will retain his stake in the company, while Basque private equity firm Easo Ventures will be one of a number of minority shareholders.
A statement said the USA Group remains committed to the current management team and plans to boost international development, promote commercial activity and increase the level of investment in production capacity.
A Madrid-based King & Wood Mallesons (KWM) team advised Portobello on the deal. The KWM team was led by Pablo Díaz, and included Gonzalo Fernández, Victoria Ruenes, Javier Reyna and Rosa Chen.
Portobello Capital was also advised by Norgestión, EY (due diligence), and Arthur D. Little. The vendors were advised by Alantra, Deloitte (due diligence) and BSK Legal & Fiscal (legal advisor).
The transaction was financed by Banco Santander.
Portobello Capital partner Juan Luis Ramírezsaid: “"We are delighted to invest in a niche industrial company with the design, engineering and product quality of the USA Group. We see a lot of value in the company, as well as great potential for organic growth and boosting commercial activity.”
Uribe commented: "Incorporating Portobello Capital and its co-investors, at this point in the organization, strengthens us and helps us to face the challenges and opportunities presented by our customers and markets".
Meanwhile, Pedro Muñoz-Baroja, director of Easo Ventures, said: "USA Group is a clear example of a Basque industrial company, with a high level of technology and quality, managed efficiently and with clear growth potential. This operation will allow the company to embark on a process of global growth that will enable it to consolidate its position in the territory. From the outset, we believe that Portobello is the ideal partner to take on this challenge".
Portobello Capital has €1.3 billion of assets under management.