Financial and operational restructuring and sale of control
Luiz Kaufmann led Santelisa Vale financial and operational restructuring and sale of control as Acting Chairman of the Board of Directors.
In 2009, Santelisa Vale was the second largest producer of sugar and alcohol in Brazil, with 8 industrial plants, crushing almost 18 million tons/year of sugar cane. Notwithstanding, it faced an indebtedness of more than R$3 billion and had an inadequate operational performance with a very low EBITDA.
The project had 3 main goals:
- Improve the EBITDA by carrying out an operational restructuring;
- Coordinate the R$3.4 billion debt restructuring initiatives with the consultants and creditor banks;
- Coordinate the M&A process with the purpose of selling total or part of the company.
The high complexity of the project was increased by the need to reconcile the interest of many shareholders, creditor banks and potential purchasers.
Within 9 months the following was achieved:
- Radical changes to the culture, organization and management and human resources processes, with relevant improvement of financial and operational performances;
- Restructuring of the debt, through a complex process lengthening the debt maturities in 15 years, with 4 years of grace period, and substantially reducing interest rates;
- Change in control through a competitive M&A process that resulted in the merger of assets and the capitalization of R$550 million.