DC Advisory advised Guzman Global on the sale of a majority stake in Guzman Polymers to Hromatka

Background

• Based in Valencia, Spain, Guzman Polymers is a leading distributor of polymers for varying industries in Southern Europe
• The company is a subsidiary of Guzman Global, a family-owned group that distributes raw materials, with over 80 years of history
• Guzman Polymers has sales of €180m, distributing 80k tons of plastics and employing 125 professionals
• Hromatka, an Austrian organisation founded in 1969, is also a family-owned business engaged in the distribution of polymers, with leading presence in Central and Eastern Europe
• The companies’ relationship dates back 15 years and both share a similar business philosophy

Process

• DC Advisory (DC) was engaged by Guzman Global to act as financial advisor to provide sell-side M&A advice on the sale of a majority stake of Guzman Polymers
• The terms of the agreement were set in 2019 and the impact of the Covid-19 pandemic accelerated the process
• DC provided comprehensive financial advisory services to Guzman Global throughout the sale process including:
  • process strategy and tactics
  • due diligence coordination
  • deal structuring
  • financial modelling and valuation
  • support in negotiations
  • advice on transaction documentation

Outcome

• Under the agreement, Hromatka acquired a majority stake of Guzman Polymers
• The groups complement each other in terms of geographical coverage, product portfolio and suppliers
• This transaction represents the creation of a European leader in the distribution of polymers
• DC ensured all work streams were successfully completed in a timely manner
• DC Advisory's extensive experience in industrial operations, and its excellent international capabilities, were key in the success of the transaction