10 Dec 2018

NK5 sells Baux to U.S.-based Jupiter Aluminum after restructuring and strengthening it over three years

Since the acquisition of Baux’s capital in January 2017 from NK5, the industrial group’s factories have increased their turnover to more than 200 million euros.

Jupiter Aluminum starts its expansion across the Atlantic and creates an international group with sales of more than 500 million euros.

NK5, a leading restructuring and investment firm specializing in companies in financial or operational distress, has announced the sale of Baux, the Spanish industrial group dedicated to hot rolling, cold rolled and lacquered aluminium from 100% recycled material and one of the five largest companies in its sector in Europe, to Jupiter Aluminum Corporation.
In the last financial year, under the ownership of NK5, Baux factories have increased their turnover by more than 200 million euros. During the current year, the results are being significantly better than those of 2017.

Baux became part of NK5’s portfolio in January 2017 after its intervention, initiated in July 2015, to save the company and restructure its finances in a process of strengthening its financial structure and operational management. The group carried endemic historical losses and a high degree of leverage. This situation, aggravated by an environment of economic crisis, was leading the company to a scenario of non-operational viability. The role played by creditor banks, led by Banco Sabadell, which supported the restructuring with new working capital financing credit lines and capex for growth, was key in the refloating operation. Also, in the framework of the expansion plan designed at the time of the acquisition, management was professionalized by the incorporation of leading entrepreneurs to its Board of Directors.

Juan José Nieto, Chairman, CEO and founding partner of NK5, said: “This is a very important operation for NK5 because it represents the perfect model of what we want and know how to do; it is very important for Baux, who three years ago was in a state of disappearance and is now an international leader with great expectations of growth that employs 330 people; and is very important for Jupiter Aluminum because it starts, in a big way, its process of internationalization with a highly professional management team and solid and profitable positions in its markets and customers. Having the permanent support of Banco Sabadell has been key to achieving our goals”.

Aluminum recycling has been the heart of Jupiter Aluminum since its founding by Dietrich Gross in 1992. Based in Chicago, Illinois, this company can be seen as a extension of Baux because of the many similarities they have in their business, production and market.

“At Jupiter, we focus our efforts on ensuring that all stakeholders in our business work together as a team to ensure success,” says Paul-Henri Chevalier, president of Jupiter Aluminum. “Our employees, customers, suppliers and agents are crucial to get well oiled machinery. When we visited the Baux plants in Segorbe and Elche de la Sierra we immediately felt this balance”. Dietrich Gross adds: “We believe this company has the same philosophy and skills as Jupiter and we are convinced that together we can continue to grow as a true international company. In other words, Baux is a natural extension of Jupiter Aluminum”.

“This is our first international operation and we are very comfortable with Baux because we belong to the same industry. But we felt equally supported by NK5 and Banco Sabadell, our advisors Livingstone Partners and an outstanding management team,” Chevalier concluded.

Sabadell Corporate Finance as financial advisor and Freshfields Bruckhaus Deringer as legal advisor to the seller participated in the operation. Jupiter Aluminum Corporation has counted with Livingstone Partners in the financial area and with Quáter Abogados in the legal one.

Baux Group (“Baux”)
Composed by the Valencian Baux Aluminium Company and by Bancolor Baux -dedicated, to the production of coils from recycled aluminium in Segorbe (Castellón) and to the aluminium coating in strips in Elche de la Sierra (Albacete), respectively. Currently, it has 330 employees in its facilities and actively contributes to the circular economy through a production process that bets on the constant recycling of aluminum with a production capacity accumulated in hot rolling, cold rolling and lacquered aluminum exceeding 100,000 tons.

Jupiter Aluminum Corporation (“Jupiter Aluminum”)
With an annual production capacity of 125,000 tons, a 96% use of recycled scrap and a turnover of nearly $400 million in 2018, has productive capacity in its three production centers, a scrap processing center located in Indiana and two paint plants in Indiana and West Virginia. Jupiter incorporates the relevant presence of Baux in Europe to its current market share established in the United States in the sector of governmental aluminum products as well as the construction and building market being two highly complementary groups.

NK5, founded in 2015, is a firm that restructures, manages and invests in companies in situations of financial and operational distress. Founded by Juan José Nieto, former executive of Goldman Sachs, Bankers Trust, Telefónica, Antena 3, and director of different companies, and with Manuel Roca de Togores and Pablo Gimeno as General Directors, both with a long history in more than 120 cases of restructuring and competition in the last 15 years in prestigious firms in the sector.

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