Industry News
Advent Acquires 25% Stake in Brazil’s Tigre for BRL1.35b
18 February 2022
Advent International acquired a 25% stake in Brazil-based construction materials manufacturer Tigre for BRL1.35b.
(LABS News) Private equity firm Advent International has bought a 25% stake in Brazilian building materials maker Tigre for BRL 1.35 billion, with an eye on the construction sector boom in the United States and Brazil. Advent will nominate two of the seven members of Tigre’s board.
Tigre plans to use the funds to acquire rivals, open new production lines in current plants and build others, said Tigre board chairman Felipe Hansen in an interview. The company also expects to expand the offer of solutions for civil construction, infrastructure and irrigation, in addition to investments in solutions, services and technology for greater efficiency in using water.
Founded in Brazil by the Hansen family about 80 years ago, Tigre has expanded throughout Latin America, with factories in countries such as Argentina, Chile and Colombia, and to the United States.
In Brazil, Otto von Sothen, Tigre president, sees a growing need for products such as pipes, with a new legal framework approved in 2020 foreseeing the universalization of basic sanitation services by 2033 in the country. In the US, where the company has three plants, Tigre plans to take advantage of President Joe Biden’s $1 trillion infrastructure bill.
Patrice Etlin, partner at Advent, said the private equity firm sees potential for consolidating in the U.S. building materials sector. The firm used resources from its seventh Latin American fund of $2 billion for the deal. Advent has already invested $13.5 billion globally in 80 companies in the industrial sector, ten of which are in Latin America.
Tigre reported net revenues of BRL 4.2 billion in the first nine months of 2021 and net income of BRL 508 million.
You may be interested in...
-
Save the Date for LAVCA ESG Awards; Vinci Partners Merged with Compass Creating USD50b AUM Asset Management Platform
-
Timing on Startup Fundraising; Is AI a Thing in LatAm?
-
Vinci Partners Deal Case; Mexico Infrastructure Partners and Mexican Government Acquires 55% Stake in Mexico’s Generation Plants for USD6.2b from Iberdrola
-
TozziniFreire Appoints Three New Partners
Brazil-based full-service firm TozziniFreire Advogados appointed new...