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Calvo Family Keeps Control And 3rd Generation To Execute Expansion Planff

31 October 2006 Spain

The Calvo family, owner of 77.8% of the Calvo Group’s shares, has decided to keep their majority share in the canning company and decided not to sell their participation. Therefore, this family saga’s third generation will take control of the company’s expansion plan.

 

Sources of the company confirmed that Calvo’s Board of Directors unanimously decided to reject any possible acquisition offers and allow the family’s third generation to continue with Calvo’s market expansion project which was planned in 2003.

 

These sources also explained that the Calvo family always shuffled two alternatives: one was to study any potential incoming investment offer and the other one was to allow new members of the family to take control of the canning company, which is rated number one in Spain and fifth worldwide.

 

Calvo has indicated to news sources that the group was never actually placed “for sale”. Proof of this is that Calvo’s considerations and plan about selling the company never left Nmas1 offices, the investment company Calvo which could have been assigned to sell the canning group.

 

At this new stage, Calvo expects to continue with its development project which was designed in 2003, and its new markets’ expansion plan, mainly aimed at Europe, Latin America and North Africa. In addition, Calvo also has decided to maintain its current activity level in the Spanish market.

 

Through an official communication the company said: “With this new project, Calvo intends to further increase its competitiveness in the global markets, as well as promote the company’s growth, by consolidating its leadership in Spain and abroad”.

In order to guarantee the generation relay within Calvo Group management, the Board of Director has decided to, not only maintain the current personnel, but appoint four new family members in the board : Calvo Lema, Luis Ríos Calvo, José Martínez Calvo and Manuel Calvo García Benavides. This last person, who is the son of Calvo’s Vice-president, will be appointed Calvo’s Managing director.

Manuel Calvo Garcia Benavides is 38 years-old; until now he was Director of Operations in Brazil and previously Manager of Calvopesca in El Salador.

 

The brothers Calvo Pumpido control 77.8% of the canning group’s shares, whereas the rest of shares are distributed among banking entities. Caixanova (11%), Caja Burgos (5.5%) and Caja Castilla-La Mancha (5.5%)

 

Calvo reached a turnover of Eur 350 million in 2005, compared to the Eur 257 million in 2004. Its gross result of exploitation (EBITDA) almost reached Euro 25 million in 2005.

 

The Calvo Group was born in 1940 in the Spanish town Carballo, in Coruña. The company now has six manufacturing plants, 2 in Carballo and Esterio and also in Morocco, Venezuela, El Salvador and Brazil.

 

The company started its international expansion in 1993, when it bought the Italian brand Nostromo. In the year 2003, Calvo invested more than Eur 110 million in El Salvador with the opening of a tuna canning factory which provided jobs to over 1000 people. They represent a third of Calvo’s total work force. After purchasing the Brazilian company Gomes da Costa, Calvo managed to reach the fifth position in the global ranking within the tuna industry.

Calvo Group employs 700 people in its Galician factories and is one of the main economic engines of the area, reason why the news about selling the company created great unrest among the Trade Union representatives and political leaders. Earlier even the Galician Government
started considering available options to help keep the company in local hands.