This article is taken from the book "Royo. A Family, a Company, a Legacy," written to mark our 50th anniversary in business.
Every month, from Invext Corporation, we share a snippet of our history, full of multiple learnings and values that help to understand where we come from, how far we have come, and what we want our next steps to be. We hope that sharing our vision can help or inspire other family businesses to believe that the best way to honour a legacy is to create a new future for it.
You can read the previous chapter here
Royo Group: Expansion into the American Continent
With the work done well and with investments underway across Europe, both from Spain and Poland, the company set its sights on expanding into a new adventure: the American continent. Thus, in 2012, the company expanded into America with Royo Mexico and Royo USA.
Commercial development then began in the American market with the opening of sales offices in various countries: USA, Costa Rica, Chile, Colombia and Peru, and the opening of the third factory in Mexico.
Our commitment was firm: we were going to conquer the United States, the most important market in the world. Since 2012, we have implemented our own delegation with a commercial office and warehouse in the country, to which I myself moved to lead this project. During these years, I have put down roots in the United States, which has facilitated the consolidation of Royo USA.
Nowadays, Royo USA handles all of Royo’s business in the United States, Central America, and the Caribbean markets. We have a large warehouse with the latest technology and a team of 10 people to manage the country’s key accounts.
After our experience in the American continent, in 2017 we decided to take a gamble on Asia and opened up a market in India with the creation of Royo Kothari India, a name derived from the local partner with whom Royo Group allied.
Strategic alliances
Our growth strategy has always been a constant focus and passion for us. In 2016, we decided to take a significant leap in our international expansion thanks to strategic alliances. H.I.G Europe, the European subsidiary of the private equity firm H.I.G Capital, invested in the capital of Royo Group. The family's hard work, the strength of the management team, and international presence, along with sustained growth and the management of the 2008 financial crisis, caught the attention of this private equity fund and opened the door to new key growth levers for Royo's future.
In 2021, the Roca Group acquired 75% of the Royo Group by purchasing a majority stake from the US private equity firm H.I.G. The Royo family retains a 25% stake in the company, as well as retaining management control, but adopts a new approach, with greater complexity in decision-making and, also, more opportunities to pursue our global expansion.
From this stage, we can extrapolate several business lessons:
- Not to let an opportunity slip away. Attention must be paid to the different growth opportunities for the business project; sometimes the ideal solution is found in unexpected places. One must know how to choose and act quickly.
- Everyone sets their own limits. When a project is clear, there are no limits. What for some might mean the end, for us it meant opening the door to new opportunities. Growth has no ceiling if your vision is broad, and finding solutions for it is a matter of creativity and detachment.
- Optimism. One should never settle; the best is yet to come. Confidence and certainty in the strategies designed are key entrepreneurial skills and, although they must always be accompanied by rigour and professionalisation, they become a driving force that leads the entrepreneur to surpass unimaginable limits.
Silvia Royo - Director of Royo USA
