(BusinessWire) Equity International has agreed to invest R$400m in Estapar Estacionamentos, the largest parking infrastructure and services operator in Brazil, expected to close in Q4 of this year.
“Urban mobility and related infrastructure are important to Brazil’s economy”
“Estapar continues to pursue its objective of transitioning from a parking services company into a full-solution parking and urban-mobility infrastructure company,” said Estapar’s Chief Executive Officer Andre Lasi. “EI’s investment will enable us to continue to broaden our portfolio to include parking infrastructure in airports, arenas, concessions and private long-term contracts. We offer attractive solutions for traditional infrastructure players, municipalities and owners of captive parking facilities.”
EI, which will take a seat on Estapar’s board of directors when the transaction closes, adds to the company’s strong institutional ownership, joining BTG Pactual, Bozano Investimentos and Templeton Emerging Markets. This is the third institutional capital raise for Estapar.
“Urban mobility and related infrastructure are important to Brazil’s economy,” commented Tom Heneghan, Chief Executive Officer of EI. “Estapar’s existing size, scalable platform, seasoned management team, sophisticated technology and attractive pipeline make Estapar a unique investment opportunity.”
Since BTG Pactual’s investment in Estapar in 2009, the company has grown parking units and spaces under management from 195 and 110,000, to 1,000 and over 360,000, respectively. Estapar estimates full-year 2016 consolidated revenues of over R$1b, representing a CAGR above 30% since 2009. The company has a mature pipeline greater than R$1.5b in investments through 2018.
“EI’s investment endorses the investment thesis of Estapar and strengthens the company’s position as the primary strategic platform in a highly attractive segment of the Brazilian economy,” said Marcelo Hallack, Board Member of Estapar and Managing Partner of BTG Pactual Private Equity. “There is embedded demand in this sector, which we believe will provide continued growth opportunities for the foreseeable future.”
Edwyn Neves, also Board Member of Estapar and a partner of BTG Pactual in its Private Equity group added, “EI brings global expertise and a long-term view to the shareholder base, both important attributes that we strongly value in Estapar’s continuing evolution.”
Brian Finerty, EI’s Chief Investment Officer and future Board Member of Estapar concluded by saying, “This investment is a great example of the type of transaction we look for – a savvy ownership and management group that values EI’s sponsorship and ability to help develop institutional-quality companies.”