(Acon) June 4, 2012 – The ACON Latin America Opportunities Fund (“ALAOF”) announced today that it led an investment of approximately R$110 million in BSM Engenharia S.A. (“BSM”) for a significant minority stake. BSM is one of the leading Brazilian providers of heavy-duty equipment rental, cargo handling services, port operations and logistics support to the oil & gas, infrastructure, mining and energy industries.
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BSM’s two main business lines are port operations serving the offshore oil and gas sector, and heavy equipment rental serving Brazil’s infrastructure sector. Its operations includes integrated logistics in the port of Macaé (RJ), the world’s largest port supporting offshore oil and gas exploration and production, as well as in the port of Vitória (ES). BSM’s equipment rental business includes a fleet of over 78 cranes, 68 stackers, 79 trucks and 1,900 containers. Its customers include wind farm, steel, mining and construction companies throughout Brazil.
“BSM’s businesses have an unmatched track record in the oil and gas logistics and civil construction industries, with a wealth of engineering knowledge and logistics expertise,” said Andre Bhatia, a Partner at ALAOF. “This investment will make BSM ideally positioned to take advantage of the tremendous market opportunities in the offshore oil and gas sectors as well in the significant investments that are being made in Brazil’s infrastructure. We look forward to working with BSM and its talented employees, partnering with its clients, to further upgrade Brazil’s infrastructure. ALAOF and BSM are also looking to expand its business in the sector through a series of acquisitions in the near future.”
ACON Latin America Opportunities Fund
ALAOF is an affiliate fund of the private equity firm ACON Investments, L.L.C. (“ACON Investments”). Founded in 1996, ACON Investments is a private equity investment firm focused on the United States and Latin America that has managed over $2.2 billion. ALAOF invests throughout Latin America with local offices in Mexico City and São Paulo. ALAOF prides itself on its flexible capital, allowing it to invest throughout the capital structure in equity, debt or intermediate structures; to invest in either control or minority stakes; and to invest throughout Latin America. ACON has invested in Brazil, Colombia, Mexico, Panama, Ecuador, among others. ALAOF’s assets include investments in hydro power, waste management, asset managers, lending institutions and retailers. Its typical investment size ranges from US$15 million to US$100 MM.