Sherpa Capital to buy three units of insolvent Spanish group Cegasa - report

Jan 27, 2015 (SeeNews) – Spanish venture capital fund Sherpa Capital is to acquire three business units of local battery and household appliances manufacturer Grupo Cegasa, thus saving 130 jobs at the insolvent company, El Pais reported on Tuesday.

The purchase agreement was signed late on Monday following approval of the sale by the bankruptcy court judge, the Spanish daily said. Sherpa Capital is buying the units for a cash consideration of EUR 2.5 million (USD 2.8m) and will pay another EUR 3 million if the operations generate turnover of more than EUR 48 million in 2015.

The avoidance of lay-offs is estimated to save EUR 6.3 million but at least 320 workers at the Cegasa plants in Vitoria and Onati will still lose their jobs. Sherpa Capital has committed to providing EUR 7 million to the three acquired units to finance production activities, El Pais added.

(EUR 1=USD 1.129)

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