HIG Europe, the European arm of global private equity firm HIG Capital, has completed a significant equity investment in Royo Group, a multinational company specialising in bathroom furnishings and appliances.
Terms were not disclosed.
Royo Group currently has 650 employees at its factories in Quart de Poblet (Valencia, Spain), Sztum (Poland) and Mexico City (Mexico). It operates in 60 countries, with 80 per cent of its revenues generated outside of Spain. The company's management team will remain at the helm, led by Raúl Royo, who has been CEO since 2008.
Jaime Bergel, managing director, HIG Europe in Spain, says: “We believe the Royo Group is a very attractive investment opportunity. We are delighted to be able to support the outstanding work carried out by the Royo family in recent years, which has transformed the group into one of the leading companies in its sector. Its strong, experienced management team has expertly grown the company during periods of prosperity, as well as during the economic crisis and real estate slump, thanks to its international presence. Royo Group is the ideal platform to spearhead growth through acquisitions and become a major player in the consolidation of what is currently a highly fragmented sector in Europe.”
Raúl Royo says: “Our goal with this equity investment by HIG is to become the European leader in the production of bathroom furnishings and strengthen the company's footprint in other areas of the bathroom appliances segment. HIG’s equity investment forms part of Royo’s Strategic Plan One 2020 framework, which is now being rolled out. Work is underway to analyse and study possible acquisitions to drive the inorganic growth of the company envisaged in the strategic plan. We will seek to acquire a greater foothold in the European markets in which we are least present.”
