DC Advisory advised Rugui Steel on its investment from Corporación JM Aristrain

Background

• Rugui Steel is a Spanish industrial group engaged in the manufacturing of high quality long steel engineering
• The Group was founded in 1953 in Azkoitia (Basque country), as Román Ucín, by Guibert family, current 100% owner of the Company
• The Company underwent a significant transformation since 2007: a strong internationalisation and expansion process; and a vertical integration including steel melting facilities with induction furnaces, a ladle treatment unit, a vacuum unit, a continuous casting process, a new hot rolling mill (increasing the product range notably) and a cold-drawing facility
  • In addition, in 2014, state-of-the-art peeling and ultrasound detection lines came into service

Transaction Overview

• DC Advisory advised Rugui Steel on the entry of Corporación JM Aristrain through a credit line convertible to equity of €30m
• The agreement includes a mechanism to capitalize the credit line in year 5 to achieve a shareholder structure 50 / 50 between Corporación JM Aristrain and Rugui’s founding familyCorporación JM Aristrain will also provide strategic and commercial support to the Company from the beginning of the credit line