Information on the Target

Founded in 1955 and headquartered in Valencia, Spain, Quimicas Oro specializes in the production and distribution of insecticides, detergents, and cleaning products under the ORO brand. The company is a regional leader in the Iberian Peninsula, generating 60% of its revenue in this market. Quimicas Oro distributes its products through national and regional chains, as well as traditional stores. Additionally, the company has a strong international presence, with exports accounting for 40% of its total revenue. With approximately 100 employees, Quimicas Oro generates over €40 million in revenue.

This acquisition follows Altaïr's previous purchase of Enteco, the company’s traditional distributor in Belgium, which generated €2 million in revenue, completed in February 2017.

Industry Overview in the Target’s Specific Country

The household products industry in Spain is characterized by a growing demand for quality cleaning and maintenance products. With increasing consumer awareness regarding hygiene and cleanliness standards, the market has seen a surge in innovative product launches and improvements. The market is also witnessing a shift towards eco-friendly and sustainable products as consumers become more environmentally conscious.

Moreover, the growth of online retailing in Spain has significantly changed how consumers access cleaning products. Digital platforms are allowing companies to engage with consumers more dynamically, offering convenience and a broad range of product options. The industry is adapting to these changes by enhancing distribution channels and marketing strategies.

With a robust domestic market, Spanish companies are well-positioned to leverage opportunities for expansion both locally and internationally. The demand for insecticides and cleaning products continues to rise, supporting businesses that can offer versatile and effective solutions in these categories.

However, competition is becoming increasingly fierce, with both established brands and new entrants vying for market share. Companies are focusing on product differentiation and customer loyalty programs to stand out amid this competitive landscape.

The Rationale Behind the Deal

The acquisition of Quimicas Oro by Altaïr, which occurred on November 10, 2017, significantly strengthens Altaïr’s position in the European household products and insecticides market. With this strategic move, Altaïr aims to achieve a combined revenue of approximately €110 million and a workforce of 370 employees.

This deal is deemed a transformational acquisition, marking Altaïr's first venture outside France. The synergies expected from combining the complementary strengths of both organizations present promising avenues for growth and market expansion.

Information About the Investor

Motion Equity Partners has been a driving force behind Altaïr's strategic growth since April 2016. As a private equity firm, Motion Equity Partners focuses on investing in companies poised for transformation and expansion. The team at Motion has worked closely with Altaïr's management team to identify and execute effective M&A opportunities, leading to this significant acquisition.

Patrick Eisenchteter, Managing Partner at Motion Equity Partners, emphasized the importance of this acquisition in realizing Altaïr’s ambitious growth strategy, noting the intensive discussions and groundwork involved over the past year to bring this vision to fruition.

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The acquisition of Quimicas Oro presents a strategic opportunity for Altaïr to expand its footprint in the competitive European household products market. Combining their resources and expertise will likely enhance their market reach and operational efficiencies, making this a potentially lucrative investment.

From a financial perspective, the projected revenue increase to €110 million reinforces the value of this deal. It positions Altaïr favorably against competitors while offering access to Quimicas Oro’s established customer base and distribution channels in Spain.

Furthermore, the anticipated synergies from aligning Altaïr and Quimicas Oro's operations unveil opportunities for cost reductions and improved innovation efforts. This can lead to a more dynamic presence in markets clamoring for high-quality, eco-friendly household products.

Overall, this acquisition can be perceived as a savvy move that should bolster Altaïr's market position, spur growth, and enhance shareholder value in the long run.

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