Financial & Operational Restructuring and Sale of Control
L.KAUFMANN conducted the financial & operational restructuring of Santelisa Vale, followed by sale of control of the company, acting as interim Chairman of the Board. In 2009, Santelisa Vale, the second largest producer of sugar & alcohol in Brazil, with 8 crushing plants and 18 million/tons year of crushing capacity, was facing a large debt over R$ 3 billion, and had a very poor operational and financial performance.
The project had 3 main objectives: (a) promote an operational restructuring to improve EBITDA margins; (b) coordinate the debt restructuring process and (c) coordinate the M&A process to find a partner that could capitalize the company and/or sell the control of the company.
The high complexity of the project was magnified by the need to reconcile the interests of several shareholders, banks and companies potentially interested in acquiring a participation in Santelisa Vale.
In 9 months the following objectives were achieved:
- Radical changes were implemented in the operational culture and processes of the company, with substantial cost reduction and EBITDA margin improvement.
- Debt was restructured, leading to a new term of 15 years, with 4 years of grace period, and lower interest rates.
- An M&A process leading to a capitalization of $ 550 million was implemented. Louis Dreyfus Commodities became the controlling shareholder of the company.
Financial & Operational Restructuring and Sale of Control
L.KAUFMANN conducted the financial & operational restructuring of Santelisa Vale, followed by sale of control of the company, acting as interim Chairman of the Board. In 2009, Santelisa Vale, the second largest producer of sugar & alcohol in Brazil, with 8 crushing plants and 18 million/tons year of crushing capacity, was facing a large debt over R$ 3 billion, and had a very poor operational and financial performance.
The project had 3 main objectives: (a) promote operational restructuring to improve EBITDA margins; (b) coordinate the debt restructuring process and (c) coordinate the M&A process to find a partner that could capitalize the company and/or sell the control of the company.
The high complexity of the project was magnified by the need to reconcile the interests of several shareholders, banks and companies potentially interested in acquiring a participation in Santelisa Vale.
In 9 months the following objectives were achieved:
- Radical changes were implemented in the operational culture and processes of the company, with substantial cost reduction and EBITDA margin improvement.
- Debt was restructured, leading to a new term of 15 years, with 4 years of grace period, and lower interest rates.
- M&A process leading to a capitalization of $ 550 million wes implemented Louis Dreyfus Commodities became the controlling shareholder of the company.