Advent International has agreed to acquire Allied S.A. from One Equity Partners and its other minority shareholders. No financial terms were disclosed for the transaction, which is expected to close in the first quarter of 2015. Also, as a result of the transaction, the Radomysler family, which founded the company, will retain a “significant” minority stake and continue to run Allied. Based in Brazil, Allied is a provider of tech products.
SAO PAULO, Dec. 18, 2014 /PRNewswire/ — Advent International, one of the largest and most experienced global private equity investors, today announced that it has signed a definitive agreement to acquire majority ownership of Allied S.A., the leading independent marketer and provider of technology products in Brazil, from One Equity Partners (OEP) and other minority shareholders. The Radomysler family, which founded the company, will retain a significant minority stake and continue to lead Allied. The transaction, subject to regulatory approval and certain closing conditions, is expected to be completed in the first quarter of 2015. Financial terms of the acquisition were not disclosed.
Founded in 2001, Allied provides services and supply chain management solutions to more than 3,700 customers, including telecommunications carriers, OEMs, retailers and corporate customers (B2B channel). The company markets technology products such as mobile phones, tablets, notebooks, cameras, games and consoles at over 15,000 points of sale in all 27 Brazilian states. In addition to its marketing business, Allied offers products and value-added services to the four largest Brazilian carriers: Claro, Oi, TIM and Vivo. With R$3.5 billion in revenue, Allied is recognized as the market leader and most experienced provider of technology products in Brazil.
“The recent growth in the telecommunications services market has created strong demand for Allied’s services, making the company an important part of the value chain,” said Patrice Etlin, a Managing Partner at Advent in Sao Paulo. “We are excited to partner with a great management team and look forward to working with Allied to pursue additional growth opportunities, such as enhancing value-added services for retailers, carriers and OEMs, developing new product lines and expanding geographically in Latin America.”
Ricardo Radomysler, Chief Executive Officer of Allied, said, “We would like to thank One Equity Partners for their important contributions to our continued success, and we are pleased to welcome Advent as a new investor. Allied is poised to benefit from the strong growth of digital device sales in Brazil and the rising consumer demand for the latest technology products.”
Marcelo Radomysler, Chief Operating Officer of Allied, commented, “Throughout these last four years, with OEP’s unconditional support, the effectiveness of the private equity model became evident in Allied. Our enthusiasm is now renewed with the arrival of Advent’s experienced team.”
Brad Coppens, a Managing Director of OEP, said, “The investment in Allied was a perfect example of One Equity Partners’ strategy of partnering with business founders and families to execute aggressive growth strategies. Over the period in which OEP was a shareholder of the business, Allied further strengthened its position as the largest independent marketer and provider of technology products in Brazil.”
Carlo Padovano, a Managing Director of OEP, added, “We are pleased to have participated in this stage of Allied’s growth story by helping the founding shareholders develop, professionalize and diversify their business over the past few years.”
The Allied investment concludes an active year for Advent in Brazil. The firm invested in three Brazilian companies in 2014: Allied, Cataratas do Iguacu, the largest concessionaire and operator of services in Brazil’s national parks, and United Medical, a specialty pharmaceutical company acquired by Advent portfolio company Biotoscana. Advent also facilitated the merger of its portfolio company Dudalina with publicly listed Restoque, creating the largest high-end apparel retailer in Brazil. Since 1996, Advent has invested in 48 Latin American companies, including 16 in Brazil.
With 13 years of operating history, Allied is recognized as the leading and most experienced provider of technology products in Brazil. The company offers innovative solutions and a wide variety of services in the mobile phones, games, imaging and IT segments. Additionally, Allied maintains a close relationship with large Brazilian carriers. The company was recognized by Anuario Telecom as “Outstanding Company of the Year in the Commercial Channel” in each of the last five years, and was among the top 10 fastest-growing companies from 2009 to 2013, according to the same publication.
About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. Since inception, the firm has invested in more than 290 companies in 39 countries and today has $34 billion in assets under management. With offices on four continents, Advent has established a globally integrated team of over 180 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments across five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. Advent is committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies. For more information, visit www.adventinternational.com.
About One Equity Partners
Founded in 2001, One Equity Partners (OEP) makes private equity investments behind compelling business ideas and strong management teams. OEP typically acts as a lead investor in acquisitions and growth capital financing. OEP invests in a variety of industries, including chemicals, healthcare, technology, business services, consumer products and manufacturing. Since inception, OEP has invested approximately $11 billion in 73 companies for JPMorgan Chase & Co. Starting in 2015, OEP investment professionals will form a new private equity investment advisory firm, OEP Capital Advisors, L.P. (“OEPCA”), and become independent from JPMorgan Chase & Co. OEPCA will manage investments on behalf of JPMorgan Chase & Co. as well as other third-party investors. OEP’s investment professionals are located across North America, South America and Europe, with offices in New York and Chicago, and advisory offices in Frankfurt and Sao Paulo.