Tikehau provides unitranche for Spanish deal

French lender Tikehau has supported the Spanish firm’s acquisition with a €14.4m unitranche facility.

French-headquartered debt investor Tikehau Investment Management has arranged a €14.4 million unitranche facility to support a construction company’s growth.

The deal will support Terratest, which provides foundation work, ground improvement and micro-tunneling for various construction projects internationally, to acquire Geostructures.

Acquiring Geostructures will enable Terratest to expand into the US market, which it sees as a strategic market for further growth. Terratest is based in Spain and was founded in 1959. Since 2014 it has been owned by private equity firm Platinum Equity. Acquiring Geostructures is expected to have a significant impact on Terratest’s financials. The company currently has combined consolidated sales of €180 million as of December 2017.

The debt package takes the form of a €14.4 million add-on unitranche. Tikehau had previously led a May 2017 refinancing of Terratest with a €60 million unitranche facility.

Carmen Alonso, head of Iberia at Tikehau Investment Management, said: : “We are pleased to continue being part of the development of Terratest and facilitating such an important milestone for the company. This financing is fully aligned with Tikehau’s
strategy of continuously supporting the growth of the companies in which we invest.”

Tikehau Investment Management is part of Tikehau Capital, which invests in debt, real estate and private equity. It has European offices in France, Italy, the UK, Spain and Belgium and two offices in Asia-Pacific in Singapore and South Korea.