Target Company Information

Coycama and Becrisa are two prominent companies in the bathroom sector, with strong positions across various segments including furniture, sinks, shower trays, shower screens, and sanitary ware. Their merger represents the establishment of a reference group within the industry.

This integration marks a significant step towards creating a leading entity in the Spanish bathroom market, combining the strengths and capabilities of both companies to enhance production capacity and service quality.

Industry Overview in Spain

The bathroom fixtures and fittings industry in Spain has demonstrated robust growth over the years, driven by increasing construction activities and the rising demand for renovations in residential and commercial spaces. The market is characterized by a strong emphasis on quality and innovation, with consumers increasingly seeking sustainable and aesthetically pleasing products.

Spain's strategic location and its manufacturing capabilities have enabled numerous companies to not only serve the domestic market but also to export their products internationally. Approximately 30% of the sales in this sector are generated from exports to over 20 countries, highlighting the global competitiveness of Spanish manufacturers.

Additionally, the industry is witnessing a trend towards digitalization and e-commerce, with companies investing in online platforms to enhance customer engagement and streamline purchasing processes. The growing integration of technology in manufacturing is also expected to drive further efficiencies and improve product offerings.

Furthermore, sustainability has emerged as a crucial factor, with an increasing number of brands focusing on eco-friendly production methods and materials. This shift not only caters to consumer preferences but also aligns with regulatory frameworks aimed at promoting environmental responsibility.

Rationale Behind the Deal

The acquisition by Nazca Capital, a leading private equity firm, is strategic in leveraging their previous experience in the bathroom sector to implement an ambitious growth plan. This plan includes enhancing production capacities, expanding internationally, and integrating the operations of Coycama and Becrisa.

The ongoing involvement of the Alemany family and Emilio Santis as shareholders and managers is expected to provide stability and continuity, ensuring the project harnesses their extensive industry knowledge and expertise.

Investor Information

Nazca Capital is a prominent player in Spanish private equity investment, particularly known for targeting small and medium-sized enterprises (SMEs). With a proven track record, including a successful prior investment in McBath, Nazca aims to capitalize on the growth potential in the bathroom industry through strategic expansions and operational efficiencies.

Through their fund, Nazca Small Cap II, the firm is focused on achieving its hard cap target of €220 million while simultaneously pursuing sophisticated acquisition strategies to further strengthen their portfolio within the sector.

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This investment presents a promising opportunity for growth in the bathroom fixtures sector, given the combined strengths of Coycama and Becrisa alongside Nazca's previous industry experience. The group's established market presence and capabilities offer a solid foundation for future expansions.

Moreover, the planned enhancements in production capacity, including the establishment of a new factory in Vinaroz, indicate a proactive approach towards meeting increasing market demands and optimizing operational efficiency.

While the plan for possible acquisitions of complementary companies could further enhance market positioning, it is essential that any such opportunities are meticulously evaluated to align with the group's strategic vision. The combination of experienced leadership and a comprehensive growth strategy is likely to drive value creation over the long term.

In conclusion, given the positive industry outlook and the strategic alignment of Nazca with the target companies, this acquisition may very well be a significant step towards establishing a leading player in the sector, contingent on successful execution of the proposed growth initiatives.

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