Private equity firm Carlyle Group LP (CG: Quote) said Thursday that it has acquired a 60 percent stake in Brazilian specialty furniture retailer, Tok&Stok, from its founders Ghislaine and Régis Dubrule.
The company noted that the investment will support Tok&Stok's growth plans. Financial terms of the deal were not disclosed.
Ghislaine Dubrule will continue as CEO of Tok&Stok, following the transaction, and the founders will retain a 40 percent stake in the company. The transaction is expected to close in the fourth quarter of 2012.
Carlyle said equity capital for the transaction will come from the $1 billion pool of capital managed by Carlyle's South America Buyout Fund and Fundo Brasil de Internacionalização de Empresas FIP, a local fund advised by Carlyle and Banco do Brasil.
Founded in 1978 and headquartered in Barueri, Tok&Stok sells a wide range of furniture and home décor products. The company is Brazil's largest specialty furniture retailer by sales.
In 2011, Tok&Stok generated sales of about R$1 billion through 35 stores in 12 states across the country and employed about 3,300 people.
Juan Carlos Felix, Managing Director with Carlyle's South American Buyout team said, "We are proud to partner with the Dubrule family, who has built a tremendous company over the course of 34 years with a solid growth track record and an outstanding management team. We look forward to supporting Tok&Stok in achieving its growth plans."
Régis Dubrule said, "Carlyle's global resources and impressive local track record were key elements in our decision to have a partner. This is a major milestone for the company and for the family."
Carlyle is a global alternative asset manager with $156 billion of assets under management across 99 funds and 63 fund of fund vehicles as of June 30, 2012.
Carlyle established its South America Buyouts team in 2008, targeting investment opportunities primarily in Brazil and other select South American countries, including Argentina, Chile, Colombia and Peru.
The company's other investments in Brazil include tourism operator CVC, health plan broker and administrator Qualicorp, lingerie maker and retailer Scalina, toy retailer Ri-Happy, and equipment rental company Grupo Orguel.
In 2009, Carlyle formed a relationship with Banco do Brasil, one of the largest financial institutions in Latin America, to source and make joint investments in South America.
CG closed Wednesday's regular session at $26.89, up $0.30 on a volume of 148,400 shares.
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by RTT Staff Writer
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