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Advent International acquires Portobello Capital’s and Vista Capital’s stakes in MAXAM

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The Spanish company is the European leader and the third largest operator in the global civil explosives and initiation systems industry
12 September 2011, Madrid, Global private equity firm Advent International has today announced that it has entered into a definitive agreement to acquire shares representing 49.998% of MAXAM’s share capital, from Vista Capital and Portobello Capital. The remaining 50.002% of the company’s share capital continues to be controlled by MAXAM’s management team, led by its Chairman&CEO, José F. Sánchez-Junco. The transaction is subject to regulatory approval as MAXAM operates in a regulated market. The deal value has not been disclosed.


MAXAM is the European leader and one of three global leaders in the civil explosives and initiation systems industry. The company is also active in the development, manufacturing and sale of mining services for mines, quarries and infrastructure around the globe; cartridges and gunpowder for sports ammunition; and products and services for the defence industry, in particular safe decommissioning of military explosives. The group comprises over 140 companies and has over 6,000 employees worldwide, with industrial facilities in more than 40 countries and sales in over 100 countries.


MAXAM’s origins date back to 1872, when Alfred Nobel founded Sociedad Española de Dinamita Privilegios A. Nobel in Bilbao. The business later merged with other leading Spanish explosives manufacturers to create Unión Española de Explosivos. Following several reorganisations and a rebranding, the company became MAXAM in 2006.


In 2010, MAXAM reported revenues of €888 million and EBITDA of €113 million. Between 2004 and 2010, the company recorded a compound annual growth rate of over 25%. In 2011, MAXAM will generate more than 60% of its revenues outside of Europe and North America.

Advent International will support the strategy developed by the MAXAM management team, as it pursues its national and international growth ambitions by expanding and strengthening its footprint in key markets, through both organic growth and selective acquisitions.

José F. Sánchez-Junco, Chairman&CEO of MAXAM, said:
“MAXAM enters this new stage with enthusiasm. The support of Advent International as a shareholder will open up new, significant opportunities to improve and consolidate leadership positions in global markets.”

“During these times of economic uncertainty, we at MAXAM see a future of challenges but also one with many growth opportunities due to our broad geographical footprint, our complete line of products and services, which, when combined with our ongoing dedication to innovation and technology, will allow us to bring even more value to our customers.”

“MAXAM’s management team became shareholders in the company in 1994, and we have partnered with financial sponsors on four transactions involving changes to the company’s ownership structure. Their experience and support have been instrumental in MAXAM’s successful positioning in international markets.”

Juan Díaz-Laviada, Managing Director, Advent International in Spain, commented:
"We are delighted to have completed this investment, which makes us significant shareholders in MAXAM. We intend to help the management team to strengthen the company’s leadership position worldwide. We look forward to collaborating with MAXAM and its more than 6,000 employees in the 40 countries in which the company has operations.”

“Advent International has deep investment experience in the industrial and business services sectors which has played to our advantage in our assessment of MAXAM’s growth prospects. MAXAM’s leading position will allow the company to successfully address the challenges which may arise in the coming years and to continue investing in product innovation and improvements in customer service quality. We will put our resources and the experience of our international team at the disposal of MAXAM in order to accelerate growth and value creation for the company.”

Advent International has completed numerous investments in the mining and chemical services space (BoartLongyear and BOS Solutions) and in the chemical and industrial sector (Oxea, HC Starck, HT TroplastMoeller, Nukem, RWE Solutions and SAG).
Following Advent’s acquisition of Tinsa, MAXAM is the second transaction completed by the firm in Spain in the last twelve months.

Íñigo Sánchez Asiaín, partner at Portobello Capital, said:
“MAXAM has been a great investment for our fund. MAXAM’s success stems from its capacity for furthering its international expansion, which has placed the company among those who have successfully evolved from a local player to a global leader. We have supported a company with market-leading technology, as well as the management ambition and leadership skills to pursue its internationalisation. Once again, the capacity of Spanish companies to achieve leadership positions in global markets has been demonstrated.”

Carlos Rodríguez de Tembleque, Chairman of Vista Capital, said:
“MAXAM is a clear example of a well-managed company with a diversified business portfolio that can operate successfully even in periods of economic uncertainty. This transaction further illustrates Vista Capital’s strategy of investing in leading companies with growth potential, in order to create value through working in close cooperation with management teams.”

Advisors
Advent International was advised by N+1 (exclusive financial advisor), Uría y Menéndez and Clifford Chance (legal), Garrigues (tax), KPMG (financial and tax due diligence), Aon Gil y Carvajal (insurance) and Boston Consulting Group (industry and market analysis).
The sellers have been advised by CMS Albiñana y Suárez de Lezo.

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Contacts


Juan Díaz-Laviada

Managing Director, Spain

T: +34 91 745 48 60
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