Agrícola Garvín is a family business with offices in Talavera de la Reina and Olías del Rey. It specialises in agricultural and forestry machinery, gardening, livestock, implements, spare parts and technical services for farmers and livestock professionals.
With almost a century of history, the company is a clear example of the evolution of many Spanish family businesses. These are projects that start from a trade, grow thanks to the commitment of several generations and, at a certain point, need to organise their structure to protect what has been built and face new stages of growth.
For this reason, at LEIALTA we invited Luis Garvín Tejerina, Manager of Agrícola Garvín, to the programme A Media Sesión on Radio Intereconomía. The aim was to hear first-hand about the company’s history, its evolution, the growth challenges it has faced and the role LEIALTA has played in its corporate and asset restructuring process.
A third-generation family business
Agrícola Garvín is now a third-generation family business. As Luis himself explained, the company’s origins go back to his grandfather Joaquín, whom he describes as “a business visionary”.
He first started out in his village, then moved to Talavera and developed different trades linked to manual work, machinery and the countryside. As Luis explained: “He was a cartwright, blacksmith, bullring builder and, over the years, he planted that seed.”
Then came the second generation, made up of his father and uncles. In 1999, the third generation decided to take over the business.
From that point onwards, Agrícola Garvín entered a stage marked by professionalisation, adaptation to technological change and the need to make increasingly strategic business decisions.
In 2030, the company will celebrate its 100th anniversary.
The transformation of the agricultural sector and Agrícola Garvín’s adaptation
The agricultural and livestock sector has undergone a major transformation in recent decades. Agricultural machinery is no longer understood only in terms of mechanical power or productive capacity. Today, factors such as robotisation and data management also play a key role.
During the interview, Luis Garvín highlighted this evolution: “There has been a very significant change in the agricultural machinery sector between what we do now and what we did 15, 20 or 30 years ago.”
For the third generation leading the company, this change revealed two fundamental needs: having reliable information to make decisions and defining a clear growth strategy. In Luis’s words: “There was also no clear and defined strategy in the company. Those two things have been critical for me.”
This reflection connects with the reality of many family businesses. Growth requires more than experience and business knowledge. It also requires information, planning and the ability to adapt to an increasingly competitive environment.
Family business: continuity, legacy and responsibility at Agrícola Garvín
One of the main themes of the interview was the value of the family business.
Luis Garvín expressed it with a particularly meaningful sentence: “I always say one thing: I have been handed a baton that is not mine.”
This idea clearly reflects the asset, family and business dimension of the case. The company is not understood only as an economic activity. It also represents the work of previous generations, the value created over decades, the trust of customers, the employment generated and the responsibility to keep the project alive.
In a family business, growth does not only mean increasing turnover or expanding activity. It also means protecting the legacy, organising responsibilities and preparing the structure so that future generations can continue the project with confidence.
For this reason, Luis insisted on another key idea: “The next step is to pass it on in the best possible health, properly structured and with a solid foundation, so that the next generations can continue maintaining it.”
The moment to organise when growth requires structure
As Agrícola Garvín grew, management also became more complex. The company accumulated more activity, more assets, more investments, more responsibilities and new projects.
Luis described this moment with a very visual image: “Before, we were driving a two-seater for a leisurely ride, and this has become an Airbus.”
The metaphor reflects what happens in many family businesses. For years, a simple structure may work. However, when the company grows or considers new business operations, that initial structure may no longer be enough.
At that point, management needs to move to another level. Intuition, experience and commercial ability are no longer enough. Information, planning, teams, structure and specialised advice become necessary.
Luis added a very useful reflection for any family business owner: “What you must be clear about is that you need to work with teams and have people around you who allow you to move up to that level and organise the company.”
That was the point at which Agrícola Garvín decided to address a third phase in its professionalisation process with LEIALTA.
LEIALTA’s role: holding company, spin-off and share-for-share exchange
In this process, LEIALTA supported Agrícola Garvín in a corporate and asset restructuring aimed at organising growth, separating risks, protecting assets and preparing the company to face new opportunities.
Luis Garvín explained it during the interview as follows: “In this case, LEIALTA has been by our side and has supported us in an exceptional way.”
The company had already gone through two previous phases of training and business organisation. However, the new stage required a stronger structure: “In this third phase, which involved creating a business structure that would allow us to organise ourselves and face the growth we had on the table, we were interested in expanding our activities.”
In this context, LEIALTA supported Agrícola Garvín in creating a holding structure, carrying out a share-for-share exchange and completing a spin-off.
“We have created a holding structure; we have carried out a spin-off of the company that allowed us to transfer the real estate assets to an asset-holding company. Then, through the share-for-share exchange, we have accessed certain tax advantages that allowed us to do this with the lowest possible financial cost,” Luis explained when discussing the benefits of the process.
This restructuring allowed the company to organise the different parts of the group more effectively.
Beyond the technical side, Luis also wanted to highlight the value of professional support: “Many internal processes have made it seem as if everything was very easy, but there has been very intense, very close and very professional work by LEIALTA.”
In other words, in a restructuring of this kind, it is not enough to execute a corporate transaction. It is necessary to understand the company, its history, its assets, its objectives, its risks and its family reality.
BMC: the strategic leap that required a prepared structure
One of the most relevant milestones addressed during the interview was Agrícola Garvín’s incorporation into BMC, an Aragonese family business specialising in agricultural machinery and in the manufacture and distribution of fertiliser spreaders.
Through the purchase of part of BMC’s shareholding, Agrícola Garvín has acquired a highly relevant international dimension. While Agrícola Garvín mainly supplied the Spanish market, BMC is present across five continents, with two main markets: the United States and Australia.
After the corporate and asset restructuring, Agrícola Garvín now has a clearer structure to face the future. As Luis concluded: “Now I have a structure, an organisation and tax tools available to me that I did not have before.”
The importance of anticipation: “preventive medicine is what cures”
In the final part of the interview, Luis Garvín left one of the clearest messages for other family business owners: “I want to be very clear and very direct: preventive medicine is what cures.”
This is precisely the most important point. Agrícola Garvín began modifying its structure when everything was going well, not when problems had already appeared.
In Luis’s words: “For me, it was very clear that I had to take this step. It had to be done at a time of health, at a time when you have availability, when you have time and when there is nothing threatening your ability to do it.”
This advice is especially relevant for family businesses that have accumulated assets, have different lines of activity, are considering growth, want to incorporate new generations or need to prepare a corporate transaction.
Luis’s own recommendation was clear: “Without any doubt, the sooner, the better.”
Structuring the company in time makes it possible to reduce risks, protect assets, facilitate decision-making and leave a more organised company for those who will come next.
Choosing the right support is also a business decision
In processes involving change, growth or restructuring, expert support does not replace the business owner. However, it does help them make better decisions.
Luis expressed it in these terms: “Being supported by professionals who accompany us, in this case LEIALTA, is another fundamental decision for the wellbeing of our companies.”
At LEIALTA, we support family businesses and corporate groups in corporate restructuring processes, asset protection, the creation of holding structures, spin-offs, share-for-share exchanges and business planning.
Cases such as Agrícola Garvín show that growth is not only about expanding activity. It also involves organising, protecting and preparing the company so that it can continue moving forward with confidence.
Because, in a family business, taking care of the future begins with making good decisions in the present.
