Gallardo Balboa says it is concluding the sale of its assets to a local industrial group and refinancing its debt.
The Spanish steelmaking group specialised in the supply of light long products for the construction sector was acquired at the end of last year by investment fund Kohlberg Kravis Roberts (KKR). The move was designed to save the company from insolvency. The board of Gallardo Balboa has been working on a long-term solution for the company since November last year, which includes the acquisition by an industrial group, for which negotiations are very advanced.
The coronavirus emergency has somewhat delayed the conclusion of the deal, but Gallardo Balboa says it is still operational despite making use of the temporary layoff scheme for some units, Kallanish notes.
Local press in Spain report the buyer of the company could be Megasa, which has steel operations in Spain and Portugal.