Tryo Group – The firm designs, develops and manufactures innovative equipment, systems and technologic solutions for a broad telecom customer base, including satellite manufacturers, broadcasting operators and air traffic management integrators.

type Case Study; Former Investment

Date 2011 - 2018

Company at a Glance:

At Alantra’s entry, Tryo Group was engaged in the design and manufacture of electronic systems and components with a high technological component, international vocation and leading positions in growing global & niche markets. The Group operated through three business lines and two operating companies (Teltronic and Rymsa).

    • Security (Teltronic): engaged in the manufacture of electronic equipment and systems for professional radios systems, such as those used by the fire brigade and the police force. Largest division of Tryo Group
    • Aerospace (Rymsa): design, manufacture and supply of high-tech antennae and passive components for fitting in satellites
    • Broadcasting (Rymsa): manufacture passive equipment for broadcasting radio and TV signals (Broadcasting) and air traffic control radar antennae and other systems (Defense & Radar)

Origination and Investment Rationale:

Tryo was a proprietary transaction resulting from the origination capabilities of Alantra PE team and the institutional support of Alantra Group. The opportunity arose from a longstanding relationship between the Alantra PE team and key managers, reinforced by high-level contacts between members of Alantra and the former shareholders of Tryo (BBVA and Iberdrola). The seller wanted to run an expeditious and quiet process to sell the two companies that initially formed Tryo (Teltronic & Rymsa) to the same buyer, and Alantra PE was seen by the management team as the ideal partner to substitute the former shareholders and execute a more aggressive business plan.

The acquisition rationale was based on the following criteria:

    • International company with c.90% of sales outside Spain
    • Worldwide leader in its business niche with recognized brand image and distinguishable technology
    • Outstanding executive team with strong internationalization focus
    • Middle-market company with potential for organic and M&A-led growth
    • Scope for taking a controlling stake

Alantra Contribution and Value Creation:

a) Management Build-Up and Upgrade

    • Team strengthened with appointments of a CEO, Head of the legal department and Development Director
    • Board of Directors reinforced with industry experts with extensive experience in telecommunication and technology

b) International Expansion and Exports

    • Security division: Teltronic’s strategy was to defend and increase its international footprint, the US being its priority target market. Teltronic opened new subsidiaries in Peru, Mexico, Singapore and Saudi Arabia
    • Aerospace division: presence in all countries with satellite market: US, Japan, France, Italy, Germany, and Canada in both commercial and institutional markets
    • Broadcast division: presence in over 50 countries, LatAm being the most important geographical area

c) Strategic add-ons and Expansion

    • The acquisition of Scati Labs in 2013 added video surveillance solutions to Teltronic’s LTE technology
    • Product diversification through the acquisition of Mier Communications (addition of active components), which increased the customer base of the aerospace and broadcasting division as a result of the cross-selling

d) Operational Improvements and Organic Growth

    • Strong R&D focus in order to develop new products and to achieve more efficient products
    • Cost optimization due to combined impact of a centralized purchasing unit, common international offices and integrated holding services

About the Exit:

Tryo’s divisions were separately sold. Teltronic was firstly sold in 2015 and Tryo Aerospace & Broadcasting (former Rymsa) in 2018.

    • Teltronic was sold to industrial buyer Sepura, a UK leading global provider of critical communications solutions for the private radio communications market, in a competitive sale process. Sepura develops and supplies digital radio solutions, complementary accessories, support tools and devices that are used by a wide range of public safety and commercial organizations.
    • Tryo Aerospace & Broadcasting was sold to the Spanish private engineering and technology group Sener, leading provider of innovative engineering & construction and energy & environment solutions with 2,400 employees worldwide.
The case studies herein are not necessarily representative of the investments made by Alantra Private Equity as a whole and have been included merely for purposes of illustrating the operational and value adding capabilities of Alantra Private Equity. The case studies have not been included to exemplify the quality or performance of any particular investment or for any other purpose.