Gomà-Camps is a family business group dedicated to the manufacturing and marketing of tissue paper and related products in the Spanish market. The business can trace its history back to the 1750s, when it built a mill near Tarragona to manufacture silk paper for use in official documents.
Today, the business remains based in Tarragona and is an important local employer.
Gomà-Camps overinvested during a period of weak cash generation driven by a sharp increase in raw material prices, resulting in a significant debt imbalance. As its debt became more challenging to manage, Clearwater was brought in to help the family explore its options.
The ability to find a solution that addresses commercial realities while maintaining the legacy and reputation built up by the business over the years.
Selling a financially sound business to consolidate the position of the other
Our initial work with Gomà-Camps included input from several investors. Selling the business at the early stage of our engagement was not optimal because the debt burden at the time would impact the valuation and diminish the potential returns to the family. A sale of the entire group could also have compromised the family’s long-term relationship with the communities it has been engaged with for hundreds of years.
However, once the business was financially sound again, we were approached by The Navigator Group, a major paper and pulp manufacturer based in Portugal.
It was interested in growing its market share in the Spanish retail market through acquisition. Under the new Goma-Camps group structure, selling the Retail business while retaining ownership of the Away-from-Home business was possible.
The bilateral process concluded with a sale completing early in 2023 to the satisfaction of the owner family. Part of the proceeds were then used to further solidify the balance sheet and invest further in the Away-from-Home business unit. The rest was cashed-out by the family that was able to see a return on their long-term commitment to Gomà-Camps, while retaining the future income stream from Gomà-Camps SAU and their connection with the area.
From our perspective, we are proud to have helped a family-owned business to maintain its legacy, secure its future and provide a return for the owners. The clarity of purpose Goma-Camps now has means that it can focus its energy and investment on the specific needs of its Away-from-Home customers. Its historic connection with the community is also maintained.
Restructuring with new money from a new source
We were given the freedom to consider a range of outcomes. We needed to find a solution to the debt burden while also looking at the long-term prospects for the business and the family.
After looking at the finances and other value drivers, we presented the family with several options to address the situation. It was finally decided to proceed with a two-staged restructuring approach. Initially we assisted them to bring in new money with a sale & leaseback transaction of part of the group’s equipment. The new money allowed them to cover urgent financing needs and bought time for the second stage of the project, which consisted in the refinancing of the balance-sheet.
A negotiation with their banks was opened and finally the business plan presented to them received their support.
Additionally, during the refinancing with the banks, we managed to separate two branches of the business that were legally interconnected (Gomà-Camps Consumer, focused on the Retail channel, and Gomà-Camps SAU, specialised in the Away-from-Home channel). By splitting the business into independent units, the family could make specific business decisions for each of them, which would be crucial for the future.
The Clearwater difference
1 Analyse the business in more than just financial terms
2 Avoid having a pre-defined outcome to allow for flexibility
3 Leverage local, regional, and global contacts to maximise options
4 Understand different owners have different needs
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