Maxam, the Spanish maker of explosives for the mining, quarries and infrastructure industries backed by global buyout firm Advent International, has taken out a €280m syndicated loan from a clutch of banks.
The new loan will be used to finance future bolt-on acquisitions and international expansion, the Madrid-based firm said in a statement.
The debt package is backed by a group of financial institutions led by the agent banks BBVA, Banesto, HSBC, Barclays and Bankia, and consists of two term loans and a revolving credit facility.
Advent bought a 45 per cent in Maxam in February last year. The remaining interest is held by the company’s management, according to the statement from the Madrid-based company.
Maxam was founded by Alfred Nobel in 1872 and today consists of more than 140 companies and 6,500 workers, with manufacturing plants in 45 countries, while its products are currently distributed and marketed in more than 100 countries.
The company generated €989m of turnover for the year ending March 31 2012 with EBITDA of €118m, according to the statement.
International business in 2011 accounted for 90 per cent of Maxam’s activity against 49 per cent in 2007 following a process of international consolidation, while EBITDA rose from 45 per cent to 91 per cent during the same period.
Advent said its value creation plan for the business will focus on partnering with the management team to support their strategy in pursuing national and international growth by expanding and strengthening its footprint in key markets through both organic growth and selective acquisitions.
The news follows the recent close of Advent International’s seventh buyout fund, which raised €8.5bn after just eight months of fundraising.
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