Turning functional spaces into places people truly enjoy
X2O is a bathrooms and sanitary equipment retailer, with a strong presence across the Benelux, Germany and France. The product assortment combines own-label and premium third-party brands, offering superior value-for-money compared to both the traditional three step model and the DIY market. The company operates an “opti-channel” model of large-format showrooms in out-of-town locations and a strong online presence. With its vertically integrated model and direct-to-consumer approach, X2O is a market leader in bathroom retail.
Investment rationale
- Sizeable, attractive and growing market which is being disrupted from traditional 3-step market towards more B2C-oriented
- Unique business model characterized by a high level of vertical integration, with in-house design and close collaboration with limited number of suppliers
- Strong competitive positioning with a difficult to beat value-for-money proposition across price categories as well as a well-balanced, smart mix and match assortment and omnichannel network
- Superior economics with sustained growth over the years and stable EBITDA margins
- Solid IT & logistics system plays a central role in the overall operations
Growth Strategy
- Leverage strong brand awareness, to explore international growth opportunities beyond the Benelux
- Develop channel agnostic “opti-channel” approach to optimize for multiple on- and offline customer touchpoints in line with the customer journey
- Maintain product and assortment leadership through continuous development of own product ranges and brands, partnership relations with third party brands and integration of product ranges in the customer journey
- Move from a founder-driven to a more mature organization with a complete, experienced and entrepreneurial management team