Portfolio
Esmalglass-Itaca Group
| Sector | Industrials |
|---|---|
| Investment type | Buyouts |
| Region | Spain |
| Status | Current investment |
Nature of Business
Esmalglass was founded in Spain in 1978, is one of the world's largest manufacturers of frits, glazes, and stains for the ceramic industry. Itaca, founded in 1989, specialises in the production of pigments for the ceramic and porcelain industry. Itaca has become a global leader with a market share of c.50% (excluding China)
Both companies integrated gradually, a process which finished in 2004 with the creation of the Esmalglass-Itaca Group. The Group has production facilities in three continents and c.1000 employees. It has frit productions in Spain, China and Brazil; pigment production in Spain; mixing plants located in Spain, Portugal, Brazil, China, Russia and Indonesia
The business is considered to be the market leader in the premium segment of the market.
Investment Overview
3i invested €70m for a 43% stake in Esmalglass in 2002. In 2004 we provided further finance to allow Esmalglass to purchase the remaining 40% of Itaca that it did not yet own.
The business is benefiting from strong growth in Latin America, Eastern Europe, China and the Middle East and is leading the way technologically with a new inkjet process for decorating tiles. This allows for greater flexibility of design and improved production with less inventory. Esmalglass-Itaca is growing market share globally in this area and is aiming to have c.30% share by the end of 2011.
