Grupo Industrial CL guarantees the future of Grupo Gallardo Balboa
by David Fleschen
Grupo Industrial CL has reached an agreement to acquire Grupo Gallardo Balboa from the investment fund KKR, owner until now of the group created by the Extremaduran businessman Alfonso Gallardo. The steel group, one of the largest industrial groups in Extremadura, will be integrated into Grupo Industrial CL.
In the operation, Grupo Industria CL will assume financial commitments worth 145 million euros, including a capital increase of 70 million plus the working capital lines of Grupo Gallardo Balboa. Immediately, Grupo Industrial CL will make an injection of 30 million euros in order to guarantee the purchase of raw materials and maintain active production in all the production centres of Gallardo Balboa. With this injection, 100% payment of suppliers, both commercial and raw materials, is guaranteed. In addition, the holding company of the Leal family guarantees the maintenance of the current staff of Grupo Gallardo.
The objective of Grupo Industrial CL is to undertake an industrial plan that reinforces the solidity of Grupo Gallardo Balboa and makes it a reference in the iron and steel sector in the European market. "After the Covid-19 crisis, we are convinced that what Extremadura and Spain need is a strong commitment to the reindustrialization of the country in order to reduce our dependence on Asian markets", assures our CEO of the Industry Division, Miguel Ángel Leal. "The purchase of Grupo Gallardo Balboa is part of our strategy to apply our own management method in industrial companies that are in difficulty but have a market and a future", he adds. From Grupo Industrial CL we have already refloated large companies like GES in the Basque Country, also with a staff of 800 workers.
Source: Grupo Industrial, Photo: Fotolia