Target Company Overview

Herbex, founded in 1984 by Jaime Visquert, is a leading company in Europe in the fresh herbs market. In the fiscal year 2017/18, Herbex achieved a revenue of €47 million, with over 75% of its sales generated outside of Spain. The company has experienced double-digit growth over the past four years, primarily driven by increased demand and its ability to capture market share through a diverse range of high-quality products and consistent year-round service.

Headquartered in El Ejido (Almería), Herbex cultivates its products across more than 700 hectares in six locations, including Morocco, the southeastern Peninsula, and Tenerife. This allows the company to maintain a steady supply of high-quality products throughout the year. Herbex's extensive catalog includes a variety of fresh herbs offered in different formats to meet client needs, with rapid delivery times of 24 to 48 hours post-harvest to customers across 26 countries in Europe, including major food distribution chains and HORECA sector groups, fully certified for food safety.

Industry Overview in Spain

The Spanish herb market has experienced significant growth, fueled by rising consumer demand for fresh, organic products. As health consciousness increases among consumers, the market for fresh herbs is expected to expand steadily. Spain's geographical advantage, with a favorable climate for herb cultivation, further enhances its position as a leader in the European fresh herb supply chain.

In recent years, there has been a noticeable shift towards sustainable and organic farming practices. This trend not only meets consumer preferences but also positions companies like Herbex favorably in a competitive landscape where organic certifications can significantly impact purchasing decisions.

Additionally, the HORECA segment is a critical growth area for fresh herb suppliers. As restaurants and caterers increasingly focus on quality and fresh ingredients, they often turn to specialized suppliers like Herbex, who can provide consistent quality and quick turnaround times.

Moreover, the evolution of food service channels, coupled with the increasing popularity of culinary experimentation among consumers, has led to a greater demand for a diverse range of herbs. This creates opportunities for growth, particularly for established players with a robust product offering and the ability to scale operations, such as Herbex.

Rationale Behind the Deal

The entrance of Nazca Capital into Herbex's shareholder structure is poised to bolster the company's growth ambitions significantly. With the capital injection from Nazca, Herbex aims to double its revenue within four years by expanding its footprint in existing markets while penetrating new ones. The partnership leverages Nazca’s expertise in international growth projects, positioning Herbex for enhanced competitiveness in the fresh herb sector.

Part of the investment will be directed towards improving production capacity, streamlining operations, and developing new product lines, including organic and exotic fruits and vegetables. This strategic alignment aims to reinforce Herbex's market leadership and foster sustainable growth.

Investor Information

Nazca Capital is a prominent investment firm focused on supporting companies in their growth trajectories through strategic guidance and capital. With a portfolio comprising various sectors, Nazca specializes in identifying opportunities for scale and international expansion. The firm's expertise in managing growth-oriented investments aligns well with Herbex's objectives, facilitating the company’s strategic initiatives and operational enhancements.

By collaborating with Herbex’s founder Jaime Visquert, who retains a significant shareholding and continues to lead the team, Nazca's investment underscores a commitment to fostering both business development and innovation within the fresh herbs market.

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This investment appears to be a prudent move as it aligns with the growing trends in the fresh food market, particularly for organic and locally sourced products. With the expected doubling of revenue in four years, Herbex is clearly positioning itself for accelerated growth, supported by Nazca's capital and strategic direction.

The fresh herb market in Europe is robust, and as Herbex has established itself as a leader, the additional resources and market expertise provided by Nazca will likely enhance its operational capabilities and market reach. This creates a favorable outlook not only for Herbex's financial performance but also for its competitive positioning within an evolving industry landscape.

However, it is essential to monitor the execution of the growth strategy carefully. The focus on new product development and market expansion necessitates effective operational management and a keen awareness of market dynamics. If executed well, this investment could yield substantial returns and solidify Herbex's status as a premier fresh herb supplier in Europe.

Overall, this deal represents a strategic partnership that holds the potential for significant growth, making it a strong investment opportunity for both Nazca Capital and Herbex.

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