US private equity firm Oaktree Capital Management has acquired Spain-based bakery firm Panrico for an undisclosed amount.
Panrico had entered into an agreement with investors to off-load its existing debt. This move by Panrico comes for the second time in the past two years to reduce debt and have a debt-free balance sheet loans with third parties.
Under the agreement, Oaktree capitalized the Panrico's loans during 2012 and increased its stake from 86% to 100% in the company.
Panrico restructured its debt in February 2012, following an agreement with its investors to reduce from its debt from €380m to €90m and extend the maturity. It was also agreed to allow the repayment of principal and payment of interest at maturity.
Panrico CEO John Casaponsa said, "This operation can write off the balance of the company to focus on our strategic plan to stabilize sales and reduce operating costs in order to change the sign of our results and ensure the future of the company. "
Panrico, based in Barcelona, specializes in bakery products, bread and biscuits. The company operates factories in Spain and Portugal and employs about 5600 people.
