There is a growing trend of small and medium size companies across the globe coming under the control of Venture Capitalist and Private Equity firms, something similar to the so called ‘Mergers & Acquisitions’ in case of large corporates.
In a latest development, Alantra Private Equity Fund III, managed by Alantra Private Equity, together with Magnum Capital II, managed by Magnum Industrial Partners, have acquired 88% stake of Portuguese ROQ (formerly known as S. Roque), one of the top manufacturers of garment printing machines and allied products in the world with significant global presence including India. It has its own R&D capabilities.
According to official announcement, in February 2018, Alantra Private Equity and Magnum Industrial Partners had announced that they had reached an agreement to acquire 88% of ROQ. The release, quoting the S. Roque administration stated that Explorer Investments which holds the majority stake of the S. Roque Group, signed the protocol on the 19th of March 2018 under which it sold its shares of R.Roque to a consortium between Magnum Capital and Alantra Private Equity. Both the companies now hold a 44% stake each in ROQ, with the remaining 12% retained by Roq’s management team. Under the directive, the structure of the S. Roque Group will be maintained. Moreover, Manuel Sá, the current CEO will lead S. Roque “so that it can maintain the status of world leader in producing automatic screen printing machines,” the release said.
ROQ was founded in 1983 and is based in Braga, Portugal. Located in the heart of the “Vale do Ave” region (Ave valley), S. Roque (ROQ) operates in its own facilities with a covered area of approximately 398.000 sq. ft. It is one of the world’s leading manufacturers of machinery and equipment for the textile printing and packaging industries, operating in the high-growth Screen Printing and Direct Print to Garment (DTG) niches. ROQ has also developed a hybrid (screen printing and digital) machine, which was successfully launched in 2017.
ROQ’s machines comes in green colour but more importantly it is known for precision, reliability, and durability. These carousel and oval machines are adding value to the work of printers all around the world. It has a global network of agents and after sales service. It showcases its products in more than 20 textile shows a year. This is how ROQ achieved a Compound Annual Growth of 20% for the last 12 years.
ROQ employs about 430 people. ROQ has presence in more than 70 countries worldwide (including India). Reportedly, 90% of its total revenues comes from international markets, with a total sales of around €54 million, a 28 per cent increase in three years. Under the new ownership, Roq seeks to increase its presence in the growing direct-to-garment screen printing market. ROQ, which operates within the textile manufacturing market, will benefit from the sound growth prospects and a resilient demand given increasing global customization and fashion trends.
Alantra is a leading independent financial advisor in the global mid-market.
It offers a wide range of investment banking services to midmarket companies and institutions through a team made up of more than 260 professionals, based in 21 countries. In India, Alantra is headquartered in Mumbai, providing M&A services to mid-market family-owned companies, mid cap corporate and private equity investors with a cross border focus.
On other hand, Spain and Portugal based, Magnum is the Private Equity firm of reference in the upper-middle market in its geography. Magnum targets companies with significant value creation potential, where its entry can be a catalyst for further growth, international expansion, consolidation, or business transformation by offering significant time and resources to improve financial and operating performance of our portfolio companies.
Venture capital (VC) is a type of private equity a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth (in terms of number of employees, annual revenue, or both).