Investcorp to add Fritta to its Spanish Portfolio

29 Jan 2015

Investcorp, a leading provider and manager of alternative investment products, today announced that Fritta, S.L. (“Fritta”), a specialist producer of intermediates for the ceramic industry, will be purchased from financial investor Nazca Private Equity. The acquisition is subject to Spanish competition authorities clearance.

Established in 1973 in Onda, Spain, Fritta produces ceramic frits and glazes as well as ceramic colors and inkjet inks, all critical intermediate products in the manufacturing of ceramic tiles. The Company’s global activities are supported by two frits manufacturing plants in Spain and Vietnam and two glaze mixing units in Italy and Mexico. Fritta employs around 300 people and its products are sold to approximately 200 customers worldwide. In 2014, Fritta is forecast to generate sales and EBITDA of around €100 million and €16 million, respectively. Over 50% of Fritta’s sales are generated outside of Spain.

Fritta will be the second company to be owned by Investcorp in Spain following the acquisition of Grupo Esmalglass-Itaca in July 2012.

Daniel Lopez-Cruz, Managing Director in Investcorp’s European Corporate Investment group, said: “Fritta is an extremely efficient producer of ceramic frits and glazes with an attractive product/service proposition and a very clear go-to-market strategy. It also benefits from a growing inkjet ink business which is allowing the company to cross-sell from its traditional frits and glazes product offering. We are backing a very competent and dynamic management team who has been able to more than double the size of the business over the last five years. Fritta and Esmalglass-Itaca target different segments of the market and have been able to do so successfully by offering very distinct approaches regarding product quality, design and technical assistance. Given this, the two businesses will continue to be run autonomously.”

Carlos Carbó, CEO of Nazca Capital, said: “Fritta represents our first exit in Nazca Fund III with excellent returns to our investors. Since our entry in December 2013, Fritta has experienced double-digit growth as a result of international expansion and successful development of the inkjet ink strategy. We are delighted with the outcome of this transaction, which represents a significant step for the development of the Company.”

Pascual Parra, CEO of Fritta, said: “The support from Nazca has allowed the Company to become one of the reference players in the industry. We see a significant international expansion opportunity at Fritta and view Investcorp as ideally suited to back and support our growth aspirations. Investcorp has a three-decade track record of assisting its portfolio companies in reaching their full potential. Besides access to capital to support our business plan, this transaction provides us with an experienced partner who has already invested in a similar company and thus knows our sector very well.”