Information on the Target

Doga, founded in 1958 and based in Barcelona, is the global leader in electric wiper systems for large off-road vehicles. The company specializes in the design and manufacture of high-value wiper solutions for industrial vehicles such as excavators, tractors, buses, trains, and trucks. Doga holds an estimated market share of over 40% in this sector. Impressively, more than 95% of Doga's sales come from international markets, with the United States representing approximately 20% of total sales.

The company employs over 1,000 staff and operates production facilities in Spain, Italy, Morocco, and China, while also maintaining commercial presence in the United States, Brazil, India, and Mexico, further extending its reach to over 80 countries. In recent years, Doga has experienced significant growth, with sales rising from 100 million euros in 2019 to an estimated 150 million euros in 2022, alongside an expected EBITDA of over 17 million euros.

Industry Overview in Spain

The electric vehicle accessories market in Spain is rapidly expanding, driven by rising environmental concerns and a strong government push towards sustainable mobility solutions. Major market trends include increased adoption of electric vehicles, leading to the growing need for efficient components such as wiper systems tailored for various vehicle types.

Spain's strategic location within the European Union further enhances its significance as a hub for innovation and manufacturing in the electric vehicle sector. Local automotive manufacturers are investing heavily in research and development to enhance sustainability in their product offerings.

Furthermore, with European Union backing for sustainable initiatives, companies like Doga are well-poised to capitalize on opportunities arising from regulations mandating green solutions. The international competition in this sector is fierce, but Doga's well-established brand and technology give it a notable advantage.

In areas such as solar panel motors, electric mobility, and precision agriculture, the demand for innovative solutions is on the rise, creating a fertile landscape for growth and expansion opportunities for leaders like Doga.

The Rationale Behind the Deal

Nazca Capital's acquisition of Doga aims to accelerate the company's international growth strategy, focusing on reinforcing its market positions in key regions such as the United States, Brazil, and China. Additionally, the acquisition intends to consolidate the company's operations in vital markets like Korea and Japan.

This tie-up also seeks to bolster Doga's research and development endeavors, facilitating the introduction of innovative products within high-growth sectors, such as solar panel motors, electric mobility, and precision agriculture, which are crucial for their future development and sustainability.

Information About the Investor

Nazca Capital is a leading private equity firm specializing in investments in Spanish SMEs not listed on stock exchanges. The firm has launched a new business line, Nazca Opportunities, focused on investments exceeding 100 million euros across various sectors. Its investors include family offices and national and international institutional investors.

The strategic choice of Doga aligns with Nazca's investment strategy, encapsulated by a commitment to partnering with companies possessing strong leadership, family-oriented structures, and ambitious growth targets.

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Analyzing the acquisition of Doga by Nazca, it appears to be a compelling investment opportunity given Doga's strong market position and growth trajectory. The company’s leadership in the electric wiper systems domain signifies a robust competitive edge.

The planned expansion into critical international markets and the focus on R&D to innovate in high-growth sectors align well with current industry trends toward sustainability, thereby enhancing the appeal of this investment.

Moreover, with companies increasingly shifting towards electric solutions in response to environmental concerns, Doga is strategically positioned to meet this demand, further solidifying its potential for profitability. The operational experience and vision of Jordi Miró and his team provide confidence that Doga can effectively navigate the forthcoming challenges and opportunities.

Overall, Nazca's strategic investment in Doga not only promises the advancement of both entities but also aligns with broader market trends, making this opportunity potentially lucrative in the long run.

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