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
