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Platinum Equity Considers the Sale of Iberconsa After Renewal of Catch Quotas in Argentina

The US investment fund Platinum Equity, led by Tom Gores, its 'Chairman and CEO', is exploring a divestment plan to sell Iberconsa, acquired six years ago, according to Nelson Saldivia of Parte de Pesca.

The recent renewal of the Individual Transferable Catch Quotas (ITCQ) of hubbsi hake by the Federal Fisheries Council (CFP), valid from January 1, 2025, to December 31, 2039, is considered a determining factor for Platinum to advance in the sale of the fishing group it has controlled since 2019.

Iberconsa, the main holder of the hubbsi hake catch quota in Argentina with 14.0282%, distributed among the vessels API V, API VII, Ceres, Geminis, Ventarrón 1°, and Verdel, holds a quota of 47,555 tons of the Maximum Permissible Catch (CMP) of common hake for 2025, set at 339,000 tons for the southern stock. In addition, the company is a global leader in the capture and marketing of shrimp and squid.

Soundings for Divestment

The "certainty" achieved by Iberconsa with its catch quota in the Argentine fishing grounds for the next 15 years has prompted Platinum Equity to explore the sale of the fishing group, which has 42 vessels in Argentina, Namibia, and South Africa, logistics plants in Vigo, Mar del Plata, Puerto Madryn, Rawson, Puerto Deseado, Walvis Bay, and Gqeberha, and markets products in sixty countries.

The possible exit of Platinum Equity has been widely reported in international media. "Six years have passed and the Los Angeles-based conglomerate has begun market soundings to prepare its divestment," reported Faro de Vigo.

Source: Faro de Vigo

Faro de Vigo also notes that Platinum Equity's management as Iberconsa's controlling shareholder has been affected by external factors such as the pandemic, increased operating and financial costs, and uncertainties about the quota-allocated species in the Argentine fishing grounds. However, Iberconsa currently presents a turnover close to 500 million euros, with 42 vessels, more than 3,800 employees, and significant diversification in its revenues.

Iberconsa Group of companies

Moody's Analysis

A Moody's analysis, issued on January 25, highlighted Iberconsa's dependence and exposure to emerging markets and assessed its financial situation, suggesting the possibility of new capital injections in the short term. "Iberconsa has adequate liquidity, although it is likely to be depleted over time as the company's limited cash flow does not fully cover the amortization of its scheduled debt," the analysis indicates.

It is recalled that Iberconsa refinanced its debt in 2023, extending its maturity from 2024 to 2027, with a capital injection of 72 million euros led by Platinum.

Alberto Freire, executive president of Iberconsa; and Juan Luis Ramírez, president of the board of directors of Iberconsa

Platinum 'Raises Anchors'

Alimarket, in a recent report, also addressed the possible sale of Iberconsa. "Iberconsa begins to think about its future after Platinum Equity, after six years under the control of the American fund. The Galician group, currently the second largest operator in the frozen fish sector in Spain, is studying the best formula to go to market, although the process has not been formally or officially initiated. As it did in 2019, it is likely to get ahead of Nueva Pescanova again, which would mean repeating what would be the largest transfer in the history of the fishing sector in Spain," predicts the market analyst.

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