GED Capital buys Grupo OM

GED Capital has acquired Grupo OM from Nazca Capital. Financial terms weren’t announced. Group OM, of Madrid, is a visual communication and merchandising company.

PRESS RELEASE

GED acquires 100% of the visual communication and merchandising company Grupo OM from Nazca Capital

• Grupo OM is a leader in its sector in Spain, with an EBITDA of around €5m in 2018 and 155 employees.
• This is the second transaction of the GED VI Spain fund, which was launched in April 2019.
• The company perfectly complies with GED’s investment criteria as it has a good cash generation capacity, high national and international growth potential, a solid management team and sectorial consolidation capacity.

Madrid, 2 December 2019. GED Capital, a private equity group specialised in the Iberian middle-market segment, has acquired through its new GED VI Spain fund 100% of the visual communication and merchandising company Grupo OM from the private equity firm Nazca Capital.

Grupo OM has a wide portfolio of products and solutions, with more than 11,000 references in visual communication and merchandising materials for mass consumption distributors and manufacturers, being the only 360º supplier capable of offering integral solutions for innovation and digital transformation. The company’s client portfolio includes the main distribution companies, both Spanish and international.

The company, which was founded in 1982 and is the leader in its sector in Spain, has 155 employees and reached an EBITDA of nearly €5m in 2018. In addition, Grupo OM has a foreign presence as it already has an operating subsidiary in Mexico, which contributes around 25% of the business.

Since 2012, during Nazca’s holding period, the company completed the transition from being the division of a family group to an independent company, with its own factory and reinforcing the team, with the objective of guaranteeing the capacity of Grupo OM to continue being the leader in its sector during the medium and long term.

Grupo OM fits perfectly with the investment criteria of the GED VI Spain fund, a company with good margins, solid cash flow generation, high growth potential both nationally and internationally, an experienced management team which has the opportunity to play a role in the consolidation of the sector. The management team will also maintain a minority shareholding, demonstrating its firm commitment to the project.

The first transaction of GED VI Spain was the acquisition of a majority shareholding in Aircraft Interior Refurbishment España (“AIRE”), a company specialised in repairing, modifying and maintaining aircraft interiors.

GED VI Spain continues with the same strategy as its predecessor GED V Spain, with investments of between €15m and €20m in companies with EBITDA of €3m to €7m. The fund expects to carry out between 8 and 10 operations in medium-sized industrial companies with high growth potential.

Enrique Centelles Satrústegui, managing partner of GED, said: “Our investment in Grupo OM, once again, demonstrates our commitment to Spanish medium-sized companies, leaders in their sector, which we will help to grow through internationalization and buy & build strategies. Our pipeline of investment opportunities for GED VI Spain remains full of excellent companies like Grupo OM, thanks to the extensive network in the business world that we have built for more than two decades in the Spanish mid-market”.

Alfonso Sebastián, CEO of Grupo OM, said: “GED’s entry will allow Grupo OM to continue the growth path we started with Nazca Capital in 2012. During this new stage we hope that the industrial and business DNA of GED Capital will allow us to boost international growth and sector consolidation to reach the full potential of our company.

Transaction advisors:

Sellers: PwC (M&A), DLA (Legal)

Buyers: KPMG (Due Diligence), Garrigues (Legal).

About GED (www.gedcapital.com)

GED is an independent management company founded in 1996 that operates in the middle-market segment. It currently manages more than 900 million euros through different vehicles of Private Equity, Infrastructures and Venture Capital.

GED has a universe of more than 50 national and foreign investors, among which are mainly pension funds, funds of funds, insurance companies, family offices and financial institutions.