Kohlberg Kravis Roberts (KKR), the largest industrial firm in Extremadura, Spain, will be taking control of Cementos Balboa, a part of Grupo Alfonso Gallardo. Cementos Balboa is located in Alconera, Badajoz. The 1.6 mtpa plant began its operating in 2005. Grupo Alfonso Gallardo had subsequently stopped production at its Spanish plants due to the exorbitant electricity prices in the region.
A refinancing programme initiated by KKR will help it to reduce its debt by -C500 million. In addition to Cementos Balboa, KKR will take control of the group´s paper business, Papresa, allowing Grupo Alfonso Gallardo to focus on its core business – corrugated steel production.
KKR started its restructuring process in 2012 to strengthen its position in the steel sector, improve its financial standing and refinance its debt, which stood at -C1.5 billion.