The Roca Group has acquired a majority stake of 75% in bathroom furniture manufacturer the Royo Group.
Roca has purchased 62% of the company from the American fund HIG and the Royo family will continue to hold 25% of the firm’s capital.
The Royo Group owns three production plants in Spain and Poland and two innovation centres.
It manufactures around one million pieces of bathroom furniture, annually, has a turnover of €95million and employs 793 people worldwide.
With this operation, the Roca Group now has a turnover of over €173million in this segment and a production of close to two million units per year.
And it boasts nine production centres, located in Spain, Portugal, Poland, Czech Republic, Russia, China and Brazil.
As part of Roca Group’s strategy to set up specialised centres of expertise for product categories within the bathroom space, Royo Group will become the hub for the development of the furniture segment for Roca Group.
Additionally, Roca Group is increasing its market share in an activity that complements sanitary tile.
Roca Group has been advised by Alantra and Broseta in this transaction, which is pending approval by the German and Polish competition courts.
According to CEO at Roca Group Albert Malgrans: “With this alliance, we reinforce the bathroom furniture category, key in our sector, with the European leader with whom we share the business vision and with whom we have collaborated closely over the last 10 years.
“This merger will allow us to further increase our competitiveness in the bathroom space and achieve the world’s leadership in this segment.”
Raúl Royo, CEO at Royo Group, highlighted this is “a great strategic alliance through a joint venture between the two companies, that reinforces the maximum possible commitment between both parties”.
He added: “The agreement with Roca, one of the largest Spanish industrial groups and a leader in the bathroom business worldwide, will help us to jointly build an even more leading and innovative company, accumulating almost 150 years of history in the bathroom sector between the two families”.
Roca Group operates in 170 countries with 81 production centres and a workforce of 24.000 professionals worldwide. In 2019 it recorded a turnover of €1.861 billion.