On 24 April 2022, the acquisition of a 45% stake in hardware distributor Mengual by private equity firm Suma Capital was completed. Baker Tilly Corporate Finance advised Mengual on this transaction.
Carlos Mengual, majority shareholder, will remain in the family business to drive and lead the firm's growth. Supported by Suma Capital, inorganic growth will be pursued through acquisitions in new territories.
Based in Granollers (Catalonia), Mengual was founded in 1971, and is run as a second generation family business by Carlos Mengual. The company specialises in the sale of wooden fittings for interior design and carpentry, a highly automated sector in which regional operators dominate. It has a portfolio of 9,000 customers and a catalogue of more than 18,000 references of the main brands in the sector, making it one of the leaders in its segment in Spain.
Mengual's growth in recent years has been largely due to its commitment to online sales, which now account for half of its turnover, and the opening of new branches in Barcelona and Cordoba.
Barcelona-based Suma Capital is a private equity firm, which with this transaction is making its sixth investment from its fund for SMEs in traditional sectors, SC Growth Fund II. The fund aims to support the organic and inorganic growth plans of profitable companies by getting involved in strategic decision-making from the Board of Directors.
"We see great potential for growth in Mengual, based on the company's good positioning in the professional segment, it’s solid foundations in the sector and the inorganic opportunities identified. We are sure the company, led by Carlos Mengual and with support from Suma Capital, will become one of the leading distributors of metal fittings for wood in Spain."
Pau Bermúdez-Cañete, partner of Suma Capital
Baker Tilly has advised the owner of Mengual in the negotiations with the Suma Capital team. Alex Wendt, a partner specialising in the sector, led the team. Baker Tilly Corporate Finance has a team specialised in Mergers and Acquisitions and has consistently ranked in the Top 10 in the global M&A market.
"This operation is a great opportunity for Mengual to accelerate organic growth as well as boosting inorganic growth in Spain."
Alex Wendt, partner of Baker Tilly
Baker Tilly International's corporate finance services include advising on cross-border transactions for clients doing business in multiple locations. Baker Tilly's network spans 145 territories, with 38,000 people working in more than 746 offices.
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