Cleon Capital and the remaining shareholders have announced the sale of 100% of Hevo Group, which holds the brands Huevos Dagu (the best-known and most important egg-producing company in Guadalajara), Ous Roig (Tortosa), Granja Agas (Cuenca) and Avícola Larrabe (Vizcaya). The total transaction value was €120 million.
The buyer, Ricardo Faria, known as “O Rei do Ovo” (The Egg King) in Brazil for being a shareholder in one of Brazil’s largest egg producers (Granja Faria), now becomes the majority shareholder of the Spanish company HEVO Group, a group headquartered in Cabanillas del Campo that is currently Spain’s second largest egg producer, with 80 million dozen eggs per year.
According to Hevo Group’s own website, “this strategic change strengthens the company’s foundations, with the aim of enabling the group to achieve greater growth and quality while preserving the unique identity and values of each of the HEVO Group brands“.
DAGU traces its origins to 1974, when it was established as a Livestock Production and Marketing Cooperative, and in 1979 it was transformed into DAGU, S.A. In 2021 it incorporated Ous Roig Tortosa, and a year later HEVO Group was formed with the addition of the Cuenca-based Granja AGAS. The group employs nearly 500 people and maintains a flock of 3.8 million laying hens.
DAGU currently processes more than 2 million eggs per day, distributed throughout the national market via the leading supermarket chains. It has a workforce of 245 people, 88% of whom hold permanent contracts, with the remainder covering holiday relief or sick leave.
This acquisition becomes the largest deal ever made in the Spanish laying poultry sector
Brazilian magnate Ricardo Faria, known as O Rei do Ovo in his home country, has concluded an agreement with Cleon Capital for the acquisition of 100% of Hevo Group, Spain’s second largest egg producer following the consolidation of Dagu, Ous Roig, Granja Agas and Avícola Larrabe. Market sources indicate that the deal is valued at approximately €120 million.
Faria is the president and founder of Granja Faria, Brazil’s largest egg producer, with revenues of 1.858 billion reais (just over €303 million at the current exchange rate) and an EBITDA of 646 million reais (€105 million) in 2023.
The acquisition of Hevo Group was carried out in a personal capacity through the investment vehicle led by the founder of Granja Faria in Brazil, as well as through his family office RCF Capital. In 2017, he sold Lave Elis for 1.3 billion reais (€212 million at the current exchange rate).
Hevo Group generates annual revenues of €155 million and produces 80 million dozen eggs. Hevo Group is Spain’s second largest egg producer.
Hevo Group also supplies Mercadona, as well as other major retail chains including El Corte Inglés, Carrefour, Makro, Covirán, Coaliment, Eroski, Consum, Bon Preu, Dia and Condis.
The group’s heirs, Juan Gigante and Bienvenido Ríos, are also exiting the shareholding structure as part of the transaction, selling their combined 10% stake in the company, according to sources consulted.
The acquisition of Dagu, headquartered in Guadalajara, was the cornerstone of the consolidation project led by Cleon Capital. This was subsequently followed by the addition of the Catalan company Ous Roig (2021), Granja Agas (2022) and Avícola Larrabe (2024), capitalising on the high degree of fragmentation in the sector.
Hevo Group supplies Mercadona, as well as other major retail chains including El Corte Inglés, Carrefour, Makro, Covirán, Coaliment, Eroski, Consum, Bon Preu, Dia and Condis.
The sale of Hevo represents Cleon Capital’s second divestment, following the sale of the biotechnology company Algex and Insud Pharma. Its portfolio of holdings currently includes four companies: Labomar (CDMO), Gais Biopharma (oncology), Cocoon (food biotechnology) and ABR (porcelain piglet rearing).
Hevo Group was established in May 2023 as a result of the merger of Dagu, Ous Roig and Granja Agas
Spain’s second largest producer in the laying poultry industry
Dagu, Ous Roig and Granja Agas merged in May 2023 to form Hevo Group, becoming Spain’s second largest producer in the laying poultry industry. In August 2024, the Basque company Avícola Larrabe was incorporated into the group, enabling it to exceed 80 million dozen eggs per year.
The group is 90% owned by the investment vehicle Master Gallus, whose principal investors are family offices from both Spain and other European countries, advised by Cleon Capital.
With a combined output of 70 million dozen eggs across the three companies prior to their merger and a joint turnover of more than €131 million in 2022, Hevo Group was established with the objective of leading the transformation of the laying poultry sector in Spain by developing new production models.
The new group, whose chief executive is Agustí Roig, has a strong presence in the retail sector as a supplier to the leading distribution chains. In May 2023 it had a workforce of 450 employees and 20 farms located in Guadalajara, Cuenca and Tarragona, of which 15 are laying farms and five are pullet-rearing facilities.
Hevo Group also operates three grading and packing centres, an egg products factory, three feed mills and an in-house laboratory, enabling it to integrate the entire egg value chain, from the procurement of cereals for feed production through to grading and final sale.
Furthermore, Hevo Group is Spain’s third largest producer of alternative eggs, with output of 24 million dozen eggs from alternative production systems in 2022, including barn, free-range and organic eggs. The group aims to achieve 50% of its total production from cage-free systems during 2024.
Hevo Group was established as a consolidation project bringing together the three companies, although Dagu, Ous Roig and Granja Agas continue to operate under their own commercial brands in the sector.
The origins of Hevo Group date back to 2021, when Grupo Dagu and Ous Roig announced their merger. Shortly afterwards, the laying poultry company Granja Agas was acquired, with the aim of becoming the leading national egg producer both in terms of scale and presence in retail and distribution, reaching 3.5 million laying hens and doubling its turnover compared to 2018.
In May 2023, the company took a further step with the creation of Hevo Group, a new corporate identity that underlines its commitment to developing production models that respect animals and the environment, while meeting the highest standards of quality and food biosecurity.