Aquila Pacha has left Ibiza behind and, staying true to Universo Pacha SA, aims to expand beyond the Balearics. Trilantic Europe, via Akdeniz Sky International SA, holds 87% of its shares and believes the brand is strong enough to lift profitability beyond the Pitiusas, where most of its business has traditionally been centered. The plan is to establish a stake in the United Kingdom and the Persian Gulf as part of a broader expansion strategy, with the headquarters at Avinguda 8 d’Agost in Ibiza hosting discussions about new partnerships.
The banner appeared a week ago, coinciding with El Confidencial’s report that Pacha had been sold for 500 million euros. Universo Pacha responded quickly, stating it has no intention of selling the brand but is looking to add a new partner to the expansion effort. A spokesperson explained that the company is exploring the possibility of merging with a partner to support an ambitious international and national growth project. Universo Pacha SA plans to open three new Lío branches next year: a new London restaurant by early 2023; a Mallorca venue the following summer; and a Dubai location after the summer season. Construction of a Marbella beach club is also underway, with Seville businessman Rosauro Varo of GAT Inversiones joining the project for a mid-2023 launch.
The objective remains to grow the brand, a major asset, and raise its international profile. After a drought-impacted period, the cherry trees are said to be bearing fruit again in Ibiza, with profitability returning toward pre-pandemic levels, according to a company spokesperson. An investment group source even described the year as outstanding, highlighting performance not only on Lío’s dance floors but also in its hotel ventures.
“Potential investors”
Since 2017, Trilantic has argued that its strategy is to monetize the full entertainment know-how of Pacha abroad. The fund emphasizes that it makes little sense for a world-famous brand to rely so heavily on a single island, with the aim of unlocking potential beyond Ibiza. Several firms have already signaled interest in the expansion plan. Universo Pacha stresses that no decision has been made yet about who will join or how the partnership will be structured. The company says that the process is in its early stages and depends on who ultimately participates, with various approaches possible, including the possibility of a shareholding arrangement.
Trilantic’s next steps remain undecided: will it stay at the helm after a new collaborator joins, or will it divest? A spokesperson notes that the goal is to find a partner to accompany the project’s development, but it is too soon to speculate. Trilantic Europe has investments in diverse sectors, from Pirelli tires to Rome airport. It has previously supported transactions involving Talgo and Euskaltel, with subsequent divestments after restructuring.
Second worst-performing Ibiza company in the pandemic
Universo Pacha rejects the idea that Covid-19 caused the push for a partner. The company reported sales of 47.4 million euros in 2019, dropping to 4.2 million euros in 2020, a 91% decline. During that period, the results swung from a pre-pandemic profit of 587,000 euros to a loss of 37.1 million euros in 2020. While it had been among the most solvent Ibiza businesses in 2019, losses surged in 2020, though projections suggested a rebound in the 2021 summer season.
The 2020 and 2021 years were particularly harsh, prompting the move to seek a partner. Universo Pacha emphasizes resilience, noting state aid in the form of a government loan of 18 million euros to mitigate pandemic effects. The loan is conditional and would be repaid if part of Universo Pacha is sold. The company has since returned to pre-pandemic levels this summer. By 2020, the workforce had been trimmed from 196 permanent roles in 2018 to 170, then down to 56 permanent positions and 48 temporary roles as operations adjusted. Indebtedness rose about 14.7% to roughly 99 million euros in 2020, according to the most recent public data.
Only Urgell’s daughter remains
Trilantic has previously saved and later divested several companies. A minority stake remains in the founder’s shares, now held by his daughter, Iria Urgell Calderón, rather than by Ricardo Urgell himself. The founder has explained that his children were not interested in pursuing night-life ventures and that selling was a difficult but necessary choice. He indicated that the heirs accepted the decision, leaving Iria still connected to the business. The founder warned of mutual funds taking control of the nightclub when the time comes, noting they tend to focus on numbers and may decide to sell again.
In Trilantic’s history, similar patterns appear. It became a Euskaltel shareholder in December 2012 and sold all assets by July 2015, acting as a catalyst for transformation and improving operations, internalizing high-value activities, and refining sales channels and after-sales functions. The firm also supported Talgo’s growth and governance since 2006 and helped institutionalize a professional shareholder base before divestment. These examples illustrate the type of strategic moves occasionally considered in Universo Pacha’s context. Other investments include MWBrands and Mediclinic International, where Trilantic entered and later exited after strategic restructuring.