Brazilian Tigre gets BRL 1.35 billion investment from Advent International

Advent bought a 25% stake in the Brazilian construction materials manufacturer, with an eye on the construction sector boom in Brazil and the United States

Tigre Advent International
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Private equity firm Advent International has bought a 25% stake in Brazilian building materials maker Tigre for BRL 1.35 billion, with an eye on the construction sector boom in the United States and Brazil. Advent will nominate two of the seven members of Tigre’s board.

Tigre plans to use the funds to acquire rivals, open new production lines in current plants and build others, said Tigre board chairman Felipe Hansen in an interview. The company also expects to expand the offer of solutions for civil construction, infrastructure and irrigation, in addition to investments in solutions, services and technology for greater efficiency in using water.

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Founded in Brazil by the Hansen family about 80 years ago, Tigre has expanded throughout Latin America, with factories in countries such as Argentina, Chile and Colombia, and to the United States.

In Brazil, Otto von Sothen, Tigre president, sees a growing need for products such as pipes, with a new legal framework approved in 2020 foreseeing the universalization of basic sanitation services by 2033 in the country. In the US, where the company has three plants, Tigre plans to take advantage of President Joe Biden’s $1 trillion infrastructure bill.

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Patrice Etlin, partner at Advent, said the private equity firm sees potential for consolidating in the U.S. building materials sector. The firm used resources from its seventh Latin American fund of $2 billion for the deal. Advent has already invested $13.5 billion globally in 80 companies in the industrial sector, ten of which are in Latin America.

Tigre reported net revenues of BRL 4.2 billion in the first nine months of 2021 and net income of BRL 508 million.

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