Spanish Textile Group Nextil Sells Portugal Manufacturing Sites for $5.1M
The transaction will enable the company to settle bank debt tied to these assets amounting to €740,000, while recording an accounting gain of nearly two million euros, which it plans to reinvest in its acquisition strategy.
Nextil is preparing its strategy in Portugal. The Spanish giant Nueva Expresión Textil (Nextil), formerly known as Dogi, has completed the sale of all of its production facilities located in northern Portugal. The operation has been structured under the sale & leaseback formula (an operation that allows, after selling an asset, to lease it back on a long-term basis) for 4.4 million euros, as reported to the Spanish National Securities Market Commission (CNMV).
As a result of the transaction, the bank debt related to these assets has been cancelled for an amount of €740,000, and an accounting gain of approximately two million euros will be recorded. In addition, the agreement includes a 25-year long-term lease contract, which guarantees the full continuity of the industrial activity of the company in its current locations.
César Revenga, CEO of Nextil and at the head of the transformation plan in which the group is immersed, has stressed that, with this move, the company seeks to “transform immobilized assets into growth capacity”. “We are not leaving, on the contrary, we are guaranteeing our permanence for decades in these same facilities thanks to a long-term lease that allows us to continue operating without interruption and paying an annual rent of less than 7% on the capital obtained,“ added the executive in a publication on his profile on the social network LinkedIn.
Nextil will use the funds for its plan to acquire other suppliers in the country
The company has specified that this transaction, carried out through its subsidiaries SICI 93 and Playvest, marks a “new milestone” in its roadmap defined in the 2024-2026 Strategic Plan. This plan is part of its strategy aimed at optimizing its financial structure, strengthening its equity and boosting inorganic growth in Portugal, to which Nextil has specified that the funds will be fully allocated.
Future acquisitions of other companies in the territory are precisely one of the bases for Nextil’s expansion in the Iberian Peninsula, where it specializes in clothing to supply the luxury sector.“ The way to consolidate the business is to win customers, but companies in the luxury sector do not change suppliers for a cost margin above or below 2%,“ explained Revenga himself to Modaes, who stressed the need to take control of other companies and thus also with its customer base.
Through this growth in Portugal, together with the boost of production in Guatemala, the other major production hub of the giant, Nextil expects to close 2026 with a turnover of €100 million. For the current year, the company’s plans are for sales of more than €60 million, and a gross operating profit (ebitda) of ten million, already far from the losses it had accumulated in recent years.
