Investing
H.I.G. Capital Confirms Sale of Acqua & Sapone to TDR Capital
Global Banking & Finance Review®
Company
As a leading global alternative investment firm, H.I.G. Capital has demonstrated for over 30 years a strategic vision that understands the market and the strengths and needs of the companies it invests in. A reflection of this approach, the firm recently announced the sale of portfolio company Acqua & Sapone to funds managed by European private equity firm TDR Capital L.L.P. (TDR). The transaction is pending the approval of antitrust regulations, but the parties have signed a definitive agreement.
The sale of Acqua & Sapone comes after the brand, the largest non-food discount retailer in Italy, more than doubled its earnings since H.I.G acquired it. Capital in 2021. Now generating over €1.1 billion in annual revenue, Acqua and Sapone has firmly established itself as a cornerstone brand for household, personal care, and cosmetic products across 700 retail locations. With a history of offering a careful balance of value and selection for its customer base, Acqua & Sapone grew its reach and income under H.I.G. Capital’s leadership and guidance.
News of the transaction was well met by H.I.G. Capital and the Barbarossa family, which initially opened the business in 1992. “H.I.G. has been a tremendous partner in helping us to further scale the business, execute M&A, improve service levels, achieve synergies, and make Acqua & Sapone the undisputed leader in the Italian market,” said Nando Barbarossa, representing the Barbarossa family. “We are grateful for the continued support from H.I.G., and we welcome our new partnership with TDR to keep building on our 40-year-long success story.”
Accustomed to working with businesses across industries, what sets H.I.G. Capital apart is the firm’s ability to hone in on the key differentiators of the companies in its portfolio and help those brands capitalize on their strengths to capture more significant market share with a rapid growth strategy. As value creation experts, the firm’s team of over 500 investment professionals brings a curated blend of expertise to every endeavor.
The success of Acqua & Sapone is another in a lineup of H.I.G. Capital’s portfolio of companies, which encompasses $64 billion of capital under management. Services provided to the mid-cap segment companies under the firm’s purview benefit from access to resources across operations, technology, consulting, and financial management. This combination can help brands make the most of their assets and create transformative change.
“Acqua & Sapone has been a great investment for H.I.G. Working in partnership with the Barbarossa family, the Company has more than doubled its earnings and cemented its position as Italy’s leading non-food discount retailer,” said Stefano Giambelli, Managing Director, and Markus Noe-Nordberg, Managing Director and Head of the H.I.G. European Middle Market L.B.O. team. “We are proud of the outstanding performance of the management team, and we look forward to continuing to support the business in its next chapter alongside TDR.”
The retailer is projected to continue operating under TDR leadership while H.I.G. Capital and the Barbarossa family maintain an equity stake in Acqua & Sapone moving forward. The TDR team shared a positive outlook regarding the transaction, noting, “Acqua & Sapone is a standout business in its sector which has thrived with the support of its current owners,” said Tom Mitchell, Managing Partner, and Jonathan Rosen, Partner, TDR. “We believe that it has great potential to continue on this trajectory and are looking forward to working with the Acqua & Sapone team, the Barbarossa family, and H.I.G. to continue the growth of the business.” TDR, which typically invests in market-leading European companies for the long term, offers its own portfolio sustainable value creation in addition to capital investment, promising a bright future for Acqua & Sapone.
Private equity refers to investment funds that buy and restructure private companies or invest in public companies with the aim of delisting them from stock exchanges.
Antitrust regulation refers to laws and policies designed to promote competition and prevent monopolistic practices in the marketplace.
Annual revenue is the total income generated by a company from its business activities over a year, before any expenses are deducted.
Value creation in investment refers to strategies and actions taken by investors or companies to increase the worth of an asset or business over time.
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