Advent International has agreed to invest in Grupo Tigre, a Brazilian provider of civil construction and water treatment solutions. The investment is for R$135 billion. When the deal closes, Advent will hold a 25 percent stake in Grupo Tigre.
SÃO PAULO, February 18, 2022 – Advent International, one of the largest and most experienced global private equity investors, today announced that it has agreed to make a strategic investment in Grupo Tigre (the “Company”), a Brazilian multinational leader in solutions for civil construction and water treatment. With the R$1.35 billion investment, Advent will hold a 25% stake and provide financial and strategic support for Tigre’s expansion plans in Brazil and international markets. The transaction is subject to customary closing conditions.
Recognized as an iconic brand in the pipes and fittings segment, Tigre has a portfolio of more than 15,000 products and is present in more than 30 countries. In 2021, the Company acquired Dura Plastic Products, a California-based manufacturer and distributor of PVC piping, as part of its international expansion strategy. The United States is a key market for Tigre as it seeks to solidify its leadership as a supplier in the water treatment market in the Americas. This is the first time in its 80-year history that the Company, founded and controlled by the Hansen family, will have a private equity firm as a partner.
“In seeking the right partner to provide both financial and strategic support and guidance, Advent stood out given its strong track record and knowledge of the Brazilian and international markets,” said Felipe Hansen, Chairman of the Board of Directors of Grupo Tigre and a third-generation member of the Hansen family. “We are pleased to welcome Advent to the Tigre family and look forward to working with them to continue our momentum.”
Under the terms of the strategic partnership, Advent will have the right to appoint two directors to Tigre’s board. Tigre and Advent will work together to expand the Company’s solutions for civil construction, infrastructure and irrigation – markets with significant growth potential in Brazil – in addition to investments in solutions, services and technology for greater water use efficiency.
“Tigre is a storied company, with a solid growth history, strong management team and clear and ambitious long-term business plan,” said Patrice Etlin, a Managing Partner at Advent. “It is with great satisfaction that we join the Tigre team to support them in their growth and value creation projects.”
For the nine months ended September 30, 2021, Grupo Tigre had R$4.2 billion in consolidated net revenue, R$855.3 million in EBITDA and R$508 million in net income. Brazil currently represents more than 60% of the Company’s net revenue.
Advent has invested US$13.5 billion in more than 80 companies in the industrial sector globally, 10 of them in Latin America, including Brazil-based GTM Holdings, one of the leading chemical distribution companies in Latin America. GTM recently merged with Caldic, a global premium provider of value-added life sciences and specialty chemicals solutions. With a strong local presence, Advent has invested more than US$7 billion in 70 companies with headquarters or operations in Latin America in the last 25 years.
ABOUT ADVENT INTERNATIONAL
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in 390 companies across 42 countries, and as of September 30, 2021, had $86 billion in assets under management. With 15 offices in 12 countries, Advent has established a globally integrated team of over 250 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology. For over 35 years, Advent has been dedicated to international investing and remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.