Global alternative investment company HIG Capital has announced the divestiture of its portfolio company and Italian non-food discount retailer, Acqua & Sapone. 

The retailer will be acquired by funds managed by private equity company TDR Capital.  

The announcement follows a report from Bloomberg, which revealed that TDR Capital had held exclusive discussions to acquire Acqua & Sapone. 

Acqua & Sapone offers household and personal care products at competitive prices. 

The retailer operates a network of 700 retail locations, generating more than €1.1bn in annual revenues.

HIG Capital managing director Stefano Giambelli and HIG European middle market LBO [leveraged buy-out] managing director and team head Markus Noe-Nordberg said: “Acqua & Sapone has been a great investment for HIG. Working in partnership with the Barbarossa family, the company has more than doubled its earnings and cemented its position as Italy’s leading non-food discount retailer.  

“We are proud of the outstanding performance of the management team, and we look forward to continuing to support the business in its next chapter alongside TDR.” 

Following the sale, HIG and the Barbarossa family will maintain a significant equity stake in Acqua & Sapone.  

The deal is subject to approval from antitrust authorities and the financial terms of the transaction have not been disclosed. 

On behalf of the Barbarossa family, Nando Barbarossa said: “HIG has been a tremendous partner in helping us to further scale the business, execute M&A [mergers and acquisitions], improve service levels, achieve synergies and make Acqua & Sapone the undisputed leader in the Italian market. We are grateful for the continued support from HIG, and we welcome our new partnership with TDR to keep building on our 40-year-long success story.”