CVC Capital Partners Fund III and Patria Investments Private Equity Fund VII are to acquire Delly’s, a food service distribution company in Brazil, from Patria’s fifth private equity investment vehicle (Fund V).
CVC Capital Partners Fund III and Patria Investments Private Equity Fund VII are to acquire Delly’s, a food service distribution company in Brazil, from Patria’s fifth private equity investment vehicle (Fund V).
The transaction will see the two funds take co-control of Delly’s, which was the largest holding in Fund V’s portfolio, and work with the existing management team “to create one of the largest food distribution companies in South America.”
According to the firms, the transaction will deliver attractive returns to current investors, while positioning CVC Capital Partners and Patria’s newest vintage fund for a new growth cycle.
Delly’s has grown from 1% market share at the time of Patria’s initial investment in 2015 to 11% in 2022, following a buy-and-build consolidation strategy in a fragmented market which had more than 400 players. The consolidation strategy, together with Patria’s intense hands-on operational approach, delivered consistent and robust operational growth of 67% Net Revenue CAGR and 60% EBITDA CAGR from 2015 to 2022.
Over the last twelve months, Patria has now secured proceeds of nearly US$2.2 billion for fund investors through divestments in both Private Equity Fund V and Infrastructure Fund III, reflecting great progress in the divestment phase of these funds.
