Darby Gets into Dall Deal

Dall, Brazil’s third largest supplier of foods and logistics services for hotel and offshore platforms, has taken BRL 35 million from Darby Private Equity, the fund managed by Franklin Templeton Investments. The investment was made from the Brazil Mezzanine Infrastructure Fund. Specifics of the deal were not publicized.


With resources from a Darby-managed fund, Brazilian services and logistics company for offshore platforms and major infrastructure projects prepares expansion of activities
(São Paulo, 10 September t, 2012) – Darby Private Equity, the private equity arm of Franklin Templeton Investments, announced that its Brazil Mezzanine Infrastructure Fund (BMIF) had invested BRL 35 million in Dall, the third largest supplier of foods, logistic services, and hotel management for offshore platforms and major infrastructure works in Brazil.
Headquartered in Aracaju, Sergipe, and with distribution centers in Macaé, Rio de Janeiro, and Guamaré, Rio Grande do Norte, Dall is the largest Brazilian company in this sector, recognized for its performance in food procurement, preparation and delivery to the oil services industry. Dall also provides facilities management services for the hotel management sector. Founded in 1996, Dall recorded 44% revenue growth in 2011 and expects to have revenues of approximately BRL 200 million in 2012. The company has approximately 1,600 employees.

The capital contribution made through the BMIF is intended to strengthen of the company’s capital structure and enable the expansion of its operations. Dall will acquire new equipment, improve its distribution centers located in Macaé and Guamaré, and expand its Aracaju base. The Darby fund management team is also expected to play an important role in the company strategic development and corporate governance.
BMIF was organized in 2008 with R$387.5 million (approximately US$235 million at the prevailing exchange rate) in committed capital. BMIF invests in medium-sized Brazilian infrastructure projects that are either new or expanding. Dall represents BMIF’s fifth investment overall and second investment in companies focused on the oil and gas sector. In 2011, the fund invested in Produman, a company that provides engineering solutions for the oil & gas sector in Brazil and is a market leader in the maintenance and overhaul of refineries. In total, Darby has invested approximately BRL 300 million in five Brazilian companies connected to the infrastructure sector.
“The investment made by the Darby-managed BMIF will allow Dall to meet the market’s increasing demand for services to the oil and gas sector arising from the development of the offshore Pre-Salt oil reserves, as well as demands for services in other infrastructure areas”, said Eduardo Farhat, Darby’s Managing Director for BMIF.
Walney Dal Bosco, Dall’s CEO and founder, points out that “Darby’s investments in Dall will be very important for the company’s development, allowing for better structuring of the company’s governance and management.”
Farhat of Darby observes that Dall’s greatest competitive edge is the logistics aimed at the oil and gas sector and other large infrastructure projects. Currently, an average of 14 tons of food and other products leave the company’s three distribution centers, supplying offshore oil platforms and large projects that lack service infrastructures. Dall serves and benefits more than 10,000 people daily.
Further information on Dall, please visit the company’s website www.dall.com.br.

Darby Private Equity was founded in 1994 by The Honorable Nicholas F. Brady, who served as U.S. Secretary of the Treasury between 1988 and 1993. Richard Frank joined the firm as CEO in 1997 after his career at the International Finance Corporation (IFC)/World Bank. In 2003, Darby became a fully owned subsidiary of Franklin Resources, Inc. [NYSE:BEN], a global investment management organization operating as Franklin Templeton Investments. For more information please visit darbyoverseas.com.
Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and over US$718 billion in assets under management as of July 31, 2012. For more information, please visit franklintempleton.com.