ACON Investments announced that its fourth Latin America-focused private equity fund, ACON Latin America Opportunities Fund IV L.P, has completed the sale of its portfolio company Betterware to a group of Mexican investors.
(Press Release) ACON Investments, L.L.C. and its affiliates (“ACON”) announced that its fourth Latin America-focused private equity fund, ACON Latin America Opportunities Fund IV, L.P., has completed the sale of its equity interest in Betterware de Mexico, S.A. de C.V. (“BWM” or the “Company”), to a group of local investors.
BWM is a leading direct-to-consumer seller of home organization and houseware products in Mexico. The Company’s product portfolio includes a large variety of items for the home, including for organization, storage, kitchen preparation, food storage and basic furniture. The Company sells its products through catalogs distributed by a nationwide network of more than 300,000 independent sales representatives.
ACON invested in the Company in the form of a highly-structured, dollar-denominated instrument with detachable penny warrants representing a significant stake in the Company. During ACON’s ownership, the Company grew substantially quadrupling its sales force, revenue and profitability. “This investment is another example of how ACON’s theme-based, flexible and value-driven strategy can deliver outstanding returns even in challenging macroeconomic and political environments,” said Jorge Dickens, Managing Partner at ACON. “This exit further cements ACON’s successful investing in middle-market companies internationally, particularly in the consumer sector in Latin America, where we have been investors for more than 20 years,” added Ricardo Jimenez, Principal at ACON.
Earlier this year, ACON successfully exited investments in Grupo Sala, the second largest waste management company in Colombia, Hidrotenencias, a renewable energy company based in Panama and Fiesta Mart, one of the largest Hispanic supermarket chains in the U.S. Recent investments by ACON in Latin America include Biosidus, the largest biosimilar pharma company in Latin America; Grupo GMI, one of the leading providers of prefabricated construction solutions in Mexico and other countries in Latin America; and Dori, a leading manufacturer of snacks and candy in Brazil, among others.
Terms of the transaction were not disclosed.