After several dry years in risk capital, foreign investment funds have consolidated themselves to salvage this business in Spain.
After several dry years in risk capital, foreign investment funds have consolidated themselves to salvage this business in Spain. There?s an obvious sign of rising because, since the beginning of 2011, huge companies such as CVC, Axa and Permira have already invested 2 billion euros in the country.
These foreign funds were prominent in 2010, the third best financial year in the last decade. And 2011 promises to be a stronger year. In the first trimester, the sector was 1.13 billion euros invested in Spain, a 300% increase compared to the same period last year.
Several transactions are notable. CVC bought Spain?s biggest private healthcare firm from the Swiss group Capio for 900 million. Axa?s acquired the online travel group Opodo for 450 million. And ACS sold their cleaning services subsidiary Clece to Permira and Mercapital for 608 million.
But more deals could follow within the next few months and the large foreign funds might have more to say, which can be seen through their divestments and acquisitions. It is worth pointing out that 3i intends to sell GES (Gamesa Energia 7 Servicios) or Boomerang, while CVC wants to sell The Colomer Group, a multinational hair care company headquartered in Catalonia.
Blackstone broke in to the Spanish market in 2010 when it purchased the food packaging company Mivisa for 850 million, and it wants to keep growing there. Similarly, several other funds are glancing at Caser?s capitalization, the delayed privatization of Canal de Isabel II and restructuring of Spanish savings banks.
Edited in English by Brandon Dyches and Jose L. de Haro (for comments contact: joseluisdeharo@eleconomista.es)
