Home Manufacturer fund Advent invests $262 million in Brazilian pipemaker Tigre

Advent invests $262 million in Brazilian pipemaker Tigre


Band Carolina Mandl

SAO PAULO, February 18 (Reuters)Private equity firm Advent International Corp has acquired a 25% stake in Brazilian building materials maker Tigre Group for 1.35 billion reais ($262 million), the two companies announced on Friday, forecasting a boom expected from infrastructure in the United States and Brazil.

Tiger plans to use the proceeds from Advent’s investment to acquire competitors, open new production lines at existing plants and build new plants, Tiger Chairman Felipe Hansen said in an interview.

Founded in Brazil by the Hansen family around 80 years ago, Tigre has expanded across Latin America, with factories in countries including Argentina, Chile and Colombia as well as the United States.

Tigre chief executive Otto von Sothen told Reuters the company expects growing demand in Brazil for products such as pipes as a new sanitation bill approved in 2020 provides for the universalization of water and waste treatment services – still unavailable in many poor neighborhoods – by 2033. Irrigation projects are also on Tigre’s radar.

In the United States, where the manufacturer has three factories, Tiger plans to take advantage of President Joe Biden’s $1 trillion infrastructure package.

Patrice Etlin, managing partner of Advent, said the private equity firm sees room for consolidation in the building materials sector in the United States. The private equity firm used proceeds from its seventh $2 billion Latin American fund to complete the transaction.

Unlisted Tiger recorded net revenue of 4.2 billion reais in the first nine months of 2021 and net profit of 508 million reais.

Advent will appoint two of the seven members of Tiger’s board of directors.

($1 = 5.1529 reais)

(Reporting by Carolina Mandl; Editing by Kirsten Donovan)

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