H.I.G. Capital’s recent sale of Acqua & Sapone to European private equity firm TDR Capital LLP underscores its ability to identify underperforming businesses, inject them with the resources they need to succeed, and improve overall performance outcomes.
Acquired in 2021, Acqua & Sapone has more than doubled its revenue generation since coming under H.I.G.’s direction. This successful transformation and growth under H.I.G. Capital’s management showcases the potential for sustainable value creation under TDR Capital’s guidance. This included H.I.G. Capital’s consolidation and integration of three disparate Italian companies into a single brand. Under the future guidance of TDR, which typically focuses on long-term investment strategies, the Italian non-food discount retailer is poised for sustainable value creation.
Acqua & Sapone currently operates over 700 stores across Italy, finding success with new and returning customers by providing personal care and household products that fit budgets and consumer demand. The retailer also touts enhanced convenience and access to goods compared to other retail channels. Identified as a business poised to grow and in need of capital injection, Acqua & Sapone was acquired by H.I.G. Capital and given access to a vast network of investment professionals. These included experts in financial management, business operations, technology integration, recruitment, and consulting. The retailer now generates over €1.1 billion in annual revenue and has become a mainstay across Italy.
Commenting on the transaction, Stefano Giambelli, Managing Director, and Markus Noe-Nordberg, Managing Director and Head of the H.I.G. European Middle Market LBO team, said, “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. 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 sale of Acqua & Sapone was just one of many transactions and portfolio assets overseen by H.I.G. Capital. The global alternative investment firm currently manages $64 billion of capital assets with a total portfolio of 400 past and present companies since its inception in 1993. These investments have included predominantly mid-size companies demonstrating high growth potential across various industries, business sectors, and geographies. The firm also boasts a team of over 500 professionals across 18 global offices, all driven to propel companies forward through transformative change.
While the sale was put to a signed definitive agreement, the transaction is pending authorization by antitrust agencies. Initially founded by the Barbarossa family in 1992, they will retain a significant equity stake in the company, as will H.I.G. Capital. “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 as representative for 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.”
Representatives from London-based TDR are also optimistic about the future of their latest acquisition. “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, at 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.” This optimism underscores the potential for Acqua & Sapone’s continued growth under TDR Capital’s ownership. The Italian retailer joins over €15 billion of assets currently under management by TDR Capital.