Aviemore Partners have worked together in the following transactions:

Hostile Take over

USD 1.1 billion hostile take-over acquisition of Chilean power Co. Gener S.A. Conducted valuation analysis of 11 subsidiaries across Latin America, established the hostile strategy and executed the acquisition of the Chilean common shares and ADR shares in New York.

Investment in Power

A consortium was formed to bid for 100 percent stake in Central Piedra Buena S.A. ("CPB") a 620MW thermal unit located in Bahia Blanca, Argentina.
75% MatlinPatterson (private equity and distressed debt fund in NY)
25% Albanesi S.A. (largest natural gas broker in Argentina)

Market Situation

  • Energy prices and capacity payments in Argentina were low and not sufficient to attract investment in new installed capacity.
  • Xcel Energy, an American energy company who owned CPB, was stuck with a plant in Argentina and with no ability to increase the business.
  • A complicated macroeconomic and political situation.

Thermal Plant

  • Dual-fuel (natural gas and fuel oil) power plant built in 1970.
  • Main revenue stream was capacity and energy payments in the local spot market (50 percent of capacity) and capacity payments through a contract with Brazilian distributors (export contract).

Investment Highlights

  • Possibility of acquiring a generation asset in Argentina at 1.6x EBITDA.
  • Energy assets in Argentina where were at all time low due to low prices.
  • Lack of installed capacity with growing demand would lead to increase in energy prices.
  • Possibility of restructuring management and making operation more efficient.
  • Possibility of obtaining cheap gas from Albanesi (largest gas broker in Argentina)

Involvement of partners of Aviemore Capital

Due-diligence, valuation, negotiation of the acquisition. Carlos Cellini was appointed CEO of Central Piedra Buena and was responsible for the complete restructuring. Santiago Born became an operational board member.

Return on Invested Capital

The consortium acquired 100% of the shares of CPB in 2004 for 1.6x EBITDA, and in 2007 sold 100% of shares with a ROIC of approx. 4.0x.

Investment in Crop Protection

MatlinPatterson private equity acquired 100pct of the shares in Agrofina S.A., a distressed agrochemical business in Argentina www.agrofina.com.ar

Investment Highlights

  • Argentina is the 3rd largest producer of grains & oilseeds in the world with continued demand for agrochemicals;
  • Distressed company about to file for Bankruptcy;
  • Low cost of entry into the agrochemical sector;
  • One of the best R&D teams in Argentina, capable of developing and registering new generics upon expiration of patents;
  • Possibility of launching new specialty agrochemical products with higher margins than commodity agrochemicals such as Glyphosate;
  • Good base for creating a nationwide distribution;

Involvement by Aviemore Partners

Engaged in the due-diligence phase, valuation analysis, debt restructuring, and strategy re-direction. Carlos Cellini was appointed CEO of Agrofina to restructure the company and Santiago Born was nominated operational Board member.

Return on Invested Capital

Despite the political & macroeconomic situation in Argentina over the last two governments, Agrofina managed to continue growing in Sales and EBITDA while turning an insignificant player to one of the top 5 within the sector, and the largest non controlled by multinationals. MatlinPatterson decided to divest in June 2103 to Grupo Los Grobo SA, an Agribusiness conglomerate in Argentina.

The change in the macroeconomic conditions in 2015 has generated a significant appreciation of Agrofina.