Target Information

Investindustrial has acquired a majority stake in Asociación de Industrias Alicantinas del Helado y Derivados, commonly known as Grupo Alacant, through its eighth private equity fund. The transaction is valued at approximately €150 million and has secured financing from Pemberton.

This strategic entry of the Italian private equity firm into Alacant aims to strengthen the production capacity of its manufacturing plants through significant investments. Additionally, it will accelerate the group's organic and inorganic internationalization strategy while enhancing its commitment to innovation in the sector. Investindustrial brings considerable expertise to the table, having previously engaged with multiple companies in the food industry, such as Natra, Sammontana, Forno d’Asolo, Amalfi (La Doria / Winland Foods), CSM Ingredients, and Eataly. This acquisition follows a failed attempt by Alacant to be acquired by Cerealto Foods and Davidson Kempner, which was halted during the due diligence phase due to differing price expectations.

Industry Overview

Grupo Alacant, founded in 1972 by a group of 35 ice cream masters, is one of the leading independent ice cream producers in Spain, primarily focusing on private label brands and ice creams for large manufacturers within the ice cream industry. The company offers a diverse range of products, including artisanal creams, cones, bonbons, sandwiches, and granitas, maintaining a strong emphasis on customer service, food safety, and product quality.

The company has established itself as a significant supplier to Mercadona, one of Spain's largest supermarket chains. In the fiscal year 2024, Grupo Alacant generated approximately €225 million in revenue. They operate four manufacturing facilities located in Alicante, Murcia, and two in Madrid, employing around 850 staff members.

The Spanish ice cream industry has experienced steady growth, driven by increasing consumer demand for innovative frozen products and health-conscious alternatives. Companies are focusing on product diversification and enhancing sustainability measures to remain competitive. This dynamic market environment provides opportunities for established players like Grupo Alacant to strengthen their market position through strategic investments and partnerships.

Furthermore, the focus on premium and artisanal products has generated a substantial market for gourmet ice creams, aligning with current food trends. The anticipated growth in the international sector also opens doors for brands looking to expand their presence beyond national borders and tap into new, lucrative markets.

The Rationale Behind the Deal

The rationale for Investindustrial's acquisition of Grupo Alacant can be attributed to the growing demand for quality ice cream products and the potential for significant growth through enhanced production capabilities and international expansion. By injecting capital and industry expertise, the firm aims to elevate Grupo Alacant's operational efficiency, enhance product offerings, and broaden market reach.

Moreover, positioning Grupo Alacant within a broader network of the Investindustrial's portfolio can enable synergies that facilitate knowledge sharing and operational improvements, all of which are critical for scaling the business effectively in today's competitive environment.

Investor Information

Investindustrial is a well-established private equity firm with a robust fundraising capacity, boasting €16 billion raised for investments in European companies. With over 35 years of experience, the firm effectively combines capital investment with industrial expertise and operational focus, aiming to accelerate sustainable value creation and international expansion for mid-sized firms.

In Spain, Investindustrial has executed significant investments in major companies such as Applus+, Euskaltel, and Goldcar, alongside others like Generalife, which emerged from the acquisition of Ginefiv. The firm's extensive portfolio includes companies like Delta Tecnic and Virospack, reflecting its diverse engagement across various sectors.

View of Dealert

The acquisition of Grupo Alacant by Investindustrial presents a promising investment opportunity. With increasing consumer preferences leaning towards high-quality, innovative ice cream products, the growth potential in both local and international markets appears substantial.

Investindustrial's expertise in the food industry, combined with Grupo Alacant’s solid market presence, offers a strong foundation for future expansion. The potential for improving operational efficiency and innovation within the ice cream sector aligns well with the current trends favoring sustainable and artisanal products.

Moreover, the recent failure of Grupo Alacant’s previous acquisition attempts demonstrates a need for a strategic partner that can offer not only the necessary capital but also the experience and operational insights to navigate the complexities of the food industry successfully.

Overall, this deal could elevate Grupo Alacant's competitive standing and drive long-term value, making it a noteworthy investment for both parties involved.

View Original Article