H.I.G. Capital Signs a Definitive Agreement for the Acquisition of Elekeiroz, a Leading Chemicals Manufacturer in Brazil, from Itaúsa
RIO DE JANEIRO – April 27, 2018 – H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with $25 billion of equity capital under management, is pleased to announce that one of its affiliates has signed a definitive agreement to acquire Elekeiroz S.A. (“Elekeiroz” or the “Company”), a leading chemicals manufacturer in Brazil, from its controlling shareholder Itaúsa –Investimentos Itaú S.A. (“Itaúsa”), one of Brazil’s largest conglomerates that, among its portfolio companies, controls Itaú-Unibanco Holding S.A., Latin America’s largest bank by assets. H.I.G. will acquire 96.5% of the Company’s shares from Itaúsa and plans to acquire the remaining shares as soon as possible. Elekeiroz, which is listed on the São Paulo stock exchange, generated sales of over R$975 million in 2017.
Founded in 1894 in the state of São Paulo, Elekeiroz is the sole producer of oxo-alcohols in Latin America and the largest producer of plasticizers in Brazil. With vertically integrated production and proximity to all main customers, the Company benefits from significant cost advantages.
Fernando Marques Oliveira, Managing Director and Head of H.I.G. Latin America, said: “We are very much looking forward to working with Elekeiroz. The management team has done a terrific job in building a leadership position across all its products and H.I.G. will now support the Company in its organic and inorganic growth plans as well as cost efficiency projects. We are especially pleased to have the opportunity to work alongside Itaúsa in structuring this transaction to unlock value in an asset which is no longer part of their investment priorities. This transaction demonstrates the ability of H.I.G. to partner with leading groups in Brazil to tailor transactions to meet their specific needs”.
“It is very exciting for us to partner with H.I.G., that, with its longstanding track record of value creation and the collaborative nature of its investment team, can significantly add to the Company’s ambitious projects going forward”, said Marcos De Marchi, Elekeiroz’s CEO.
Mr. De Marchi and Elekeiroz’s management team, responsible for leading Elekeiroz during the last six years, will remain with the Company.
Founded in 1894 and headquartered in Várzea Paulista – São Paulo, Elekeiroz operates in the chemicals manufacturing market. Through two production sites in Várzea Paulista and Camaçari – Bahia, the Company’s portfolio includes Oxo-Alcohols, Plasticizers, Phthalic & Maleic Anhydrides, Sulfuric Acid and other by-products. Elekeiroz has a diversified client base, composed mainly of large global chemical companies and the Company products’ end markets range across many segments of the industrial and consumer markets. For more information, please refer to the Company’s website at http://www.elekeiroz.com.br/
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $25 billion of equity capital under management*. Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Rio de Janeiro, Bogotá and Mexico City, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach:
- H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
- H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.