The change of ownership of Celsa is now a reality. The creditor funds that have taken 100% of the capital of the steel group have effectively taken control of the company, replacing the Rubiralta family, who were unable to implement a credible viability plan to address the substantial debt of nearly 4,000 million euros accumulated by the company. This Friday, the appointment of Rafael Villaseca as the new non-executive chairman of Celsa became effective, and the hiring of Jordi Cazorla as the new CEO was also announced.
This opens a new era for the company based in Castellbisbal, considered one of Catalonia's industrial jewels. With a presence in nine countries and a turnover expected to reach 6,109 million euros this year, Celsa is a European steel giant that leads the sector in the production of circular and low-emission steel: 97% of everything it produces in its factories is made with recycled steel, as the raw material the company uses is scrap metal instead of iron ore.
"A new stage begins, which marks a starting point for consolidating Celsa's leadership in the sector," highlighted Rafael Villaseca, who plans to meet with the management teams of each of the company's operating centers in the coming weeks to hear their concerns and learn in detail about ongoing projects. The veteran executive is also chairman of the Naturgy Foundation and a board member of Cementos Molins and VidaCaixa. Villaseca (Barcelona, 1951) was the CEO of the former Gas Natural between 2005 and 2018 and, previously, had managed other companies such as Panrico and chaired Tabasa, Túnel del Cadí, Gisa, Inisel (now Indra), and Nueva Montaña Quijano, a subsidiary, precisely, of Celsa. He is also a member of the advisory board of Fomento del Trabajo and a member of the Spanish chapter of the Club of Rome.
The new owners of what was until now the largest Catalan family business, led by Deutsche Bank, Attestor, HSBC, and SVP Global funds, in addition to signing Villaseca, have chosen the Catalan executive Jordi Cazorla as the group's new CEO. He is an industrial engineer from UPC and holds an MBA from the Universitat de Barcelona who, currently, is the general director for Southern Europe of the British paper group DS Smith, manufacturer of cardboard packaging and all types of special papers. Previously, he held management positions at Ideal Standard, American Standard, General Electric, and Hewlett Packard. Until Cazorla joins the company, Sergio Vélez, head of FTI Consulting Spain, will hold the position of general director of Celsa. FTI Consulting Spain is the firm hired by the creditor funds to manage this transition phase.
Villaseca: "A new stage begins that represents a starting point to consolidate Celsa's leadership in the sector"In a statement, the new ownership highlighted that its objective "is ensure the highest standards of corporate governance and value creation". Along these lines, they have also hired a State attorney, Daniel Alaminos, to act as secretary of the new board of directors of Celsa, whose composition is being finalized. On a transitional basis, this board chaired by Villaseca will have four independent directors: Maria Esther Alfonso Evisa, Antonio Arenas Rodrigañez, Francisco Javier Díaz-Gálvez de la Cámara and Luis Aurelio Martín Bernardo. "All of them have extensive experience in managing companies in transition processes and in implementing viability plans," they assure.
On September 4, in a ruling that has been described as historic, Barcelona's commercial court number 2 homologated, that is, accepted the restructuring plan proposed by Celsa's creditors, which meant capitalizing 1.4 billion euros of debt in exchange for taking ownership of 100% of the group. This reduction in the volume of debt has been accompanied by a renegotiation of the amortization periods for the remaining debt. Specifically, the maturity has been extended by five years ---until 2028--- and, in addition, the extension of the group's working capital lines has been agreed to meet day-to-day needs. "With this operation, Celsa finds itself in a much improved financial situation," highlights the new ownership.
Green light from the Council of Ministers
In addition to executing this debt restructuring, to gain effective control of the company, the funds have had to convince the Government of the merits of the operation, which was subject to the control of the Council of Ministers, in accordance with the regulations on direct foreign investments that Spain tightened after the outbreak of the pandemic. The Government's approval has already been granted after the funds accepted several commitments as it is a strategic company, such as the maintenance of the company's long-term viability, the group's decision-making in Spain, and the protection of employment and productive capacity within the framework of Celsa's strategic nature.
Another requirement, although not explicitly stated in the communiqué issued this Friday, would be the obligation to incorporate a Spanish industrial partner into Celsa who could take around 20% of the capital.
With a presence in Denmark, Spain, France, Ireland, Norway, Poland, Sweden, and the United Kingdom, Celsa employs around 10,000 people and assures that these changes occur "in a record year for its turnover, with 6.109 billion euros in revenue."
The group has also explained this week that it is "in the final stretch towards total circularity," as 97% of its product is already manufactured with recycled steel. In the last fiscal year, the company has recovered more than 80,000 tons of non-ferrous material and 432 tons of plastics. Its goal is to achieve a 50% reduction in CO2 emissions by 2030 compared to 2021 and to be a Net Positive company by 2050.