An affiliate of private equity investment firm HIG Capital (HIG) is to acquire Elekeiroz, a leading chemicals manufacturer in Brazil, from its controlling shareholder Itaúsa – Investimentos Itaú, one of Brazil’s largest conglomerates.
HIG will acquire 96.5 per cent 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 BRL975 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 plasticisers 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 HIG Latin America, says: “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 HIG 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 HIG to partner with leading groups in Brazil to tailor transactions to meet their specific needs.”
“It is very exciting for us to partner with HIG which, 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,” says Marcos De Marchi, Elekeiroz’s CEO.
De Marchi and Elekeiroz’s management team, responsible for leading Elekeiroz during the last six years, will remain with the Company.
