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Brazil’s Fortbras Group Acquired By Private Equity Investors

The transaction marks Advent International’s first investment in the fragmented $35 billion Brazilian real (approximately $11 billion USD) aftermarket auto parts sector in Brazil.

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Advent - Fortbras Grupo - LogoGotemburgo Participações S.A., a holding company controlled by Advent International, one of the largest global private equity investors, announced it has agreed to acquire Fortbras Group, a leading distributor of aftermarket auto parts in Brazil. Fortbras will be led by Roberto Szachnowicz, former CEO of Grupo Dpaschoal.

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The transaction, subject to regulatory approval and customary closing conditions, is expected to be completed in the third quarter of 2016. Financial terms of the acquisition were not disclosed.

Founded in 1992, Fortbras distributes auto parts to more than 25,000 customers, including repair shops, auto parts stores and vehicle fleet owners. The company sells electrical and mechanical products for light vehicles, heavy vehicles and motorcycles, serving customers from 18 locations across 17 Brazilian cities. With sales of close to R$500 million ($157 million USD) for the 12 months ended June 30, 2016, Fortbras is one of the fastest-growing players in the Brazilian auto parts sector, having doubled its revenue in the past five years.

“Brazil is one of the largest vehicle markets globally, and the country’s auto parts segment has grown significantly in recent years,” said Wilson Rosa, a managing director at Advent in São Paulo. “We believe Fortbras is well-positioned to capture the strong demand for auto parts in Brazil in the coming years, and we are excited to partner with a great management team to pursue additional growth opportunities.”

Juvenil Casagrande, co-founder of Fortbras Group, said, “We would like to thank our employees, suppliers and customers for their contribution to our success over the past 24 years and are pleased to welcome Advent as a new investor. We look forward to working with Advent’s experienced team to continue our growth story.”

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Upon completion of the transaction, Szachnowicz commented, “This is a highly fragmented market, and we see significant opportunities to grow, both organically and through selective acquisitions. Fortbras is an impressive company, and its shareholders and employees have been extremely successful in expanding their business model throughout Brazil. I am thrilled to join this team and help lead the company in its next stage of development.”

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