Bahrain-based Investcorp is set to buy Fritta, a specialist producer of intermediates for the ceramic industry, from financial investor Nazca Private Equity.

The acquisition is subject to Spanish competition authorities clearance, said a report in the Gulf Daily News (GDN), our sister publication.

Investcorp is an alternative investment manager listed on the Bahrain Bourse.

Established in 1973 in Onda, Spain, Fritta produces ceramic frits and glazes as well as ceramic colours and inkjet inks, used 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.

Last year, Fritta is expected to have generated sales and EBITDA of around €100 million ($113.4 million) and €16 million, respectively.

More than 50 per cent 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.

“Fritta is an efficient producer of ceramic frits and glazes with a valuable business proposition and a consistent go-to-market strategy,” Investcorp's Gulf Business president Mohammed Al Shroogi said.

“It also leverages its expanding inkjet ink business, which allows the company to cross-sell from its traditional frits and glazes product offering.”

Al Shroogi said Fritta's management team has been able to more than double the size of the business over the last five years.

“Fritta and Esmalglass-Itaca successfully target different segments of the market by offering distinct approaches to product quality, design and technical assistance.

“Given this, the two businesses will continue to be run autonomously,” he added.

Nazca Capital chief executive Carlos Carbo said Fritta represented its 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,” Carbo added.

Fritta chief executive Pascual Parra said support from Nazca 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,” he added. - TradeArabia News Service