(Press Release) Advent International, one of the largest and most experienced global private equity investors, today announced that it has signed a definitive agreement to acquire majority ownership of Allied S.A., the leading independent marketer and provider of technology products in Brazil, from One Equity Partners (OEP) and other minority shareholders. The Radomysler family, which founded the company, will retain a significant minority stake and continue to lead Allied. The transaction, subject to regulatory approval and certain closing conditions, is expected to be completed in the first quarter of 2015. Financial terms of the acquisition were not disclosed.
Founded in 2001, Allied provides services and supply chain management solutions to more than 3,700 customers, including telecommunications carriers, OEMs, retailers and corporate customers (B2B channel). The company markets technology products such as mobile phones, tablets, notebooks, cameras, games and consoles at over 15,000 points of sale in all 27 Brazilian states. In addition to its marketing business, Allied offers products and value-added services to the four largest Brazilian carriers: Claro, Oi, TIM and Vivo. With R$3.5 billion in revenue, Allied is recognized as the market leader and most experienced provider of technology products in Brazil.
“The recent growth in the telecommunications services market has created strong demand for Allied’s services, making the company an important part of the value chain,” said Patrice Etlin, a Managing Partner at Advent in São Paulo. “We are excited to partner with a great management team and look forward to working with Allied to pursue additional growth opportunities, such as enhancing value-added services for retailers, carriers and OEMs, developing new product lines and expanding geographically in Latin America.”
Ricardo Radomysler, Chief Executive Officer of Allied, said, “We would like to thank One Equity Partners for their important contributions to our continued success, and we are pleased to welcome Advent as a new investor. Allied is poised to benefit from the strong growth of digital device sales in Brazil and the rising consumer demand for the latest technology products.”
Marcelo Radomysler, Chief Operating Officer of Allied, commented, “Throughout these last four years, with OEP’s unconditional support, the effectiveness of the private equity model became evident in Allied. Our enthusiasm is now renewed with the arrival of Advent’s experienced team.”
Brad Coppens, a Managing Director of OEP, said, “The investment in Allied was a perfect example of One Equity Partners’ strategy of partnering with business founders and families to execute aggressive growth strategies. Over the period in which OEP was a shareholder of the business, Allied further strengthened its position as the largest independent marketer and provider of technology products in Brazil.”
Carlo Padovano, a Managing Director of OEP, added, “We are pleased to have participated in this stage of Allied’s growth story by helping the founding shareholders develop, professionalize and diversify their business over the past few years.”
The Allied investment concludes an active year for Advent in Brazil. The firm invested in three Brazilian companies in 2014: Allied, Cataratas do Iguaçu, the largest concessionaire and operator of services in Brazil’s national parks, and United Medical, a specialty pharmaceutical company acquired by Advent portfolio company Biotoscana. Advent also facilitated the merger of its portfolio company Dudalina with publicly listed Restoque, creating the largest high-end apparel retailer in Brazil. Since 1996, Advent has invested in 48 Latin American companies, including 16 in Brazil.