Information on the Target

InvestIndustrial, a prominent global private equity firm, has acquired a majority stake in Grupo Alacant, a leading ice cream manufacturer based in Spain. Established in 1972 in Alicante, the company specializes in producing private label ice cream products for retail clients, as well as co-manufacturing for major international brands. Its diverse product line includes tubs, cones, bulk ice cream, and sandwiches, catering to a wide array of consumer preferences.

In 2024, Grupo Alacant reported impressive revenue of €225 million, employing approximately 850 individuals across its four manufacturing facilities located in Alicante, Murcia, and Madrid. This acquisition signifies a crucial advancement for the company as it seeks to solidify its presence in the Spanish market and expand its reach throughout Europe via both organic growth and strategic acquisitions.

Industry Overview in Spain

The ice cream industry in Spain has shown considerable growth over the past few years, driven by increasing consumer demand for innovative and high-quality frozen dessert options. Alongside traditional flavors, there is a notable trend towards healthy alternatives, such as low-calorie and dairy-free options, catering to the evolving preferences of health-conscious consumers.

Spanish consumers are increasingly gravitating towards premium ice cream products, contributing to the rising popularity of artisanal and gourmet offerings. This shift presents significant opportunities for manufacturers like Grupo Alacant, which are well-positioned to leverage their capabilities in producing high-quality private label products.

Furthermore, the trend toward personalized and customized ice cream experiences is gaining traction, encouraging manufacturers to explore diverse flavor profiles, packaging options, and co-branding initiatives. The growth of online retail and the influence of social media on consumer choices are also reshaping how ice cream brands engage with their audiences.

Amidst this landscape, Grupo Alacant's focus on private label production places it in an advantageous position to adapt to market changes and meet the demands of key retail partners in Spain and beyond.

The Rationale Behind the Deal

The acquisition of Grupo Alacant by InvestIndustrial is driven by the firm's strategic intent to enhance its portfolio within the food sector, particularly in the thriving private label ice cream segment. The partnership aims to bolster Grupo Alacant's operational capabilities, allowing for increased production efficiency and improved distribution channels.

InvestIndustrial seeks to leverage its extensive operational expertise and international market presence to support Grupo Alacant's expansion goals. The collaboration will enable Grupo Alacant to tap into new markets throughout Europe and solidify its position as a leading player in the ice cream manufacturing industry.

Information about the Investor

InvestIndustrial is a well-established private equity firm with a robust global presence, focusing on investing in high-quality businesses across the food, fashion, and manufacturing sectors. With a commitment to operational improvement and strategic growth, the firm actively partners with its portfolio companies to enhance their value over time.

Under the leadership of Andrea C. Bonomi, chairman of the advisory board, InvestIndustrial has successfully facilitated the growth of various entities by utilizing its extensive network and industry insights. The firm's record in the private label food category positions it well to support and accelerate Grupo Alacant's development trajectory.

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Dealert believes that the acquisition of Grupo Alacant by InvestIndustrial presents a compelling investment opportunity for several reasons. Firstly, Grupo Alacant's established reputation in the private label sector, combined with InvestIndustrial's resources, is likely to result in enhanced operational efficiencies and stronger market positioning.

Furthermore, the growing demand for quality private label ice cream products in Spain and across Europe aligns well with Grupo Alacant's strengths and operational capabilities. This industry growth is expected to provide significant upside potential, especially as the company aims to expand its footprint through innovative products and strategic partnerships.

Additionally, with the consumer trend shifting towards healthier and premium ice cream options, Grupo Alacant is well-positioned to capture market share in this evolving landscape. By leveraging InvestIndustrial's expertise, the company can effectively navigate these trends and innovate its product offerings accordingly.

In conclusion, the partnership between InvestIndustrial and Grupo Alacant holds significant promise for creating value, supporting sustainable growth, and ultimately establishing Grupo Alacant as a leader in Europe’s ice cream market.

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