MCH and Ardian seek buyer for Palacios

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MCH Private Equity and Ardian are sounding out the market with their advisors AZ Capital in order to boost the growth of Grupo Palacios, according to Expansión.

In this regard, there are already a number of potential buyers for a majority stake in the company with an estimated valuation of around 500 million euros based on a recurring ‘non-process’ in the Spanish market. Thus, in order not to burn assets, companies offer advisors an estimate of the price they expect to receive for one of their investees without granting a formal mandate to sell. Investment bankers then go to the market in search of potential buyers.

Palacios, which closed the 2023 financial year with 45 million in ebitda and around 380 million in turnover, is proceeding with this corporate operation after refinancing its debt in January, signing loans for 135 million euros with entities such as Banco Santander, Sabadell and CaixaBank.

The meat and precooked meats producer, led by Pedro Dominquez as CEO and Florencio Lazaro as CFO, intends to continue, therefore, to drive its growth in 2024 with shareholders who expect to obtain a double-digit valuation multiple.