In 2005, Espiga Capital acquired a majority stake in Lékué, a Spanish kitchen products manufacturer, alongside the company’s CEO. Despite the recent economic turmoil in the country, Espiga has shepherded the company through a period of stellar growth.
Since Espiga’s investment, Lékué has developed strongly on the international stage, transformed its product positioning, reshaped its supply chain and invested heavily in R&D and marketing. If only more private businesses could show such inspiring expansion in today’s depressed environment.
Espiga has supported us and worked hard to transform the company into a world leader. Without its perspective, candour and patience, our success would have not been possible.
Xavier Costa CEO, Lékué
What did the business need?
- International expansion
- Investment in R&D and marketing functions
- Development of supply chain
How did private equity backing create lasting value?
- Creation of R&D department, allocating high-profile resources and allowing design process industrialisation.
- Brand building process focused on positioning Lekue as a premium brand
- Increased spending on marketing, advertising, media campaigns and packaging
- Substitution of low-margin supermarket customers with specialised stores
- Launch of an e-commerce platform
- Development of the international commercial growth of sales force in France.
- Partnership with the Japanese distributor, establishment of Shanghai manufacturing facility and agreements with local distributors in Germany and other European markets
What outcomes did private equity investment achieve?
- Launched more than 100 new products in the last 5 years
- Sales have seen 23% CAGR in the last five years, reaching 28m euro in 2010
- Exports now account for 80% of turnover, with Japan making up around a third – up from zero five years ago