SlideShare uma empresa Scribd logo
1 de 12
Baixar para ler offline
Country Report - Brazil
M&A update
Spring 2013
Brazil is a strategic focus for
foreign corporates. Its role as host
of the 2014 FIFA World Cup and the
2016 Summer Olympic Games is
acting as a catalyst for a major
government-led programme of
infrastructure projects across
the country.
Foreign corporates are attracted
to these high growth opportunities
available across Brazil’s economy.
Brazil attracts one of the highest
levels of FDI globally and with
investment expected to reach a
record US$70 billion in 2013,
competition for high quality
assets is increasing.
Key findings from our research:
Foreign corporates from low growth
economies are participating in Brazil’s
US$600 billion plus investment
programme to upgrade infrastructure
and increase energy production. The
demand for experienced specialist
providers is creating opportunities
across the supply chain and driving
inbound M&A.
Brazil is forecast to be the fifth largest
consumer market globally by 2020.
Both foreign corporates and
international financial investors
are using acquisitions of leading
domestic brands to enter the market
and establish a platform for growth.
Brazil has a complex operating
environment and investors typically
enter the market via a joint venture or
through a majority stake acquisition
which can include a path to full
ownership.
Brazil is a core
strategic market for
foreign corporates
with international
ambitions
“The increase in global
cross-border capital flows
combined with Brazil’s
macro-economic
fundamentals and disciplined
policies makes Brazil a very
attractive destination for
foreign companies to invest.”
Leonardo Antunes, Managing Director, BroadSpan
Major growth opportunities driving
inbound M&A
MergersAlliance2013
Brazil M&A update
2
Foreign direct
investment to reach
record US$70 billion
in 2013
Brazil is the third most attractive
investment destination by value
globally with only China and the
US attracting a higher proportion of
inbound foreign direct investment (FDI).
GDP growth is forecast to exceed
3% in 2013 (see Figure 1). The
domestic economic stimulus
implemented during 2012 will support
higher growth. Real interest rates are
currently close to historical lows, retail
sales are increasing, unemployment is
low by Brazilian standards and industrial
and business confidence is rising.
Higher growth means Brazil remains
attractive for inflows of FDI. FDI are
expected to increase from an estimated
US$64 billion in 2012 to US$70 billion in
2013 and US$75 billion in 2014
(see Figure 2). The US, UK, Spain,
Germany and China account for the
majority of investment.
MergersAlliance2013
Inbound FDI favours
domestic sectors and
commodities
6.1%
5.2%
-0.3%
7.5%
2.7%
0.9%
3.1%
2007 2008 2009 2010 2011 2012 2013*F
Figure 1: Gross domestic product
(% growth YoY)
Source: Brazilian Statistics Bureau, *Credit Suisse
International companies have focused
on sectors linked to rising consumer
spending including food products and
beverages, retail and consumer
products, insurance and commodities
(see Figure 2). Around 75% of
investments have been made in
projects with a value less than
US$500 million.
Figure 2: Foreign direct investment (US$ billions)
2007 2008 2009 2010 2011 2012E* 2013F* 2014F*
34.6
45.1
25.9
48.5
66.7
64.0
70.0
75.0
80
70
60
50
40
30
20
10
0
US$billions
Source: Central Bank of Brazil, *Credit SuisseSource: Central Bank of Brazil
Oil & gas extraction: 4.4
Food products
& beverages: 6.7
Metals: 6.5
Commerce
(ex. vehicles): 5.9
Insurance: 4.4
Financial services: 4.3
Top 5 FDI by segment 2012 (US$ billions)
Brazil M&A update
3
Fifth largest
consumer market
globally by 2020
By 2020 Brazil is forecast to be the
fifth largest consumer market in the
world with household consumption
of US$1.8 trillion. Foreign companies
are attracted to consumers’
discretionary spending power
(see Figures 3 and 4). The middle
class has grown to around 133
million people in 2014 with 85% of
the population living in urban areas.
Brazilian consumers are optimistic
about the outlook for their household
income, and fiscal initiatives have been
targeted to support consumption.
Foreign brands are taking advantage
of the growth in spending on areas
such as alcohol, technology and
fashion. For example, UK drinks
giant Diageo acquired the leading
premium cachaça brand Ypióca for
US$455 million in 2012. Cachaça is the
largest spirits category in Brazil and the
acquisition gives Diageo a platform for
the sale of premium international spirits
brands in Brazil.
MergersAlliance2013
Brazil is benefiting
from high consumer
spending
11.1%
2004 2005 20072006 2008 2009 2010 2011 2012
3.1%
6.4%
13.6%
9.9%
6.8%
12.2%
6.6%
8.0%
Average growth rate
Figure 4: Broad retail sales % YoY
Source: Brazilian Institute of Geography and Statistics
10.2
USA JapanChina Germany Brazil France UK Italy
5.4
3.5
2.2
1.8 1.6 1.5 1.4
Figure 3: Global consumer market
in 2020 US$ trillion
Source: Exame Magazine and McKinsey
As incomes have risen, consumers are
also spending more on buying services
such as education and healthcare.
This is leading to M&A.
- H.I.G. Capital acquired Cel Lep
Idiomas, a leading premium English
Language Teaching network, in 2012
- Italian global medical device
manufacturer Sorin Group recently
acquired Alcard Industria Mecanica,
a manufacturer of medical devices for
cardiac surgery
- Canada-based Valeant is a serial
acquirer and has established a strong
presence in dermatology and the
sports food supplement market
with the acquisitions of Instituto
Terapêutico Delta, Bunker Industria
Farmacêutica and Probiotica
- US-based Agfa HealthCare acquired
healthcare IT company WPD,
enabling Agfa to increase its market
share for imaging and IT systems for
radiology in Brazil
4
Brazil M&A update
Foreign companies
will bid in 2013
infrastructure
concession auctions
Bottlenecks driving
major infrastructure
spend
The 2014 FIFA World Cup and 2016
Summer Olympic Games are acting
as a catalyst for public and private
investment to upgrade Brazil’s
infrastructure, which is running
at overcapacity and slowing
economic growth.
The Government will spend
US$33 billion on preparations to
host the World Cup and Olympics
including building stadiums, water
sports venues, hotels, roads,
subways and airports. This will be
supplemented by investment from the
corporate sector in the supply chain
related to the events.
Brazil is auctioning concessions for
major airports, railways and toll roads.
Auctions, which will typically be won
on price, are open to international
competition. Foreign corporates are
attracted to companies with
concessions. For example, in 2012
US-based Brookfield Infrastructure
established a joint venture with Abertis
Infraestructuras to acquire a majority
stake in Arteris for US$1.7 billion.
Arteris is one of the largest owners
and operators of toll road concessions
in Brazil
Foreign corporates are using their
technical expertise to supplement
Brazil’s less mature infrastructure
capabilities. Companies from the
UK are particularly active:
- Balfour Beatty entered the market
via a partnership with leading
construction company Camargo
Corrêa and is working on rail links
to the mining industry based in
north Brazil
MergersAlliance2013
20
70
80
90
50
60
30
40
10
100
0
Fiat
Ford
Renault
Honda
Nissan
Others
Market Share %
21.7%
9.0%
6.5%
4.9%
4.3% 3.6%
Citroen
2.7%
6.7%
GM
18.2%
Hyundai
VW
20.6%
Toyota
2.0%
Figure 5: Foreign brands dominate
car sales (2012 sales units 10k)
Source: KARI, Mirae Asset Research
Demand for automobiles is increasing,
but with light vehicle density just 137
per 1,000 people compared to more
than 640 cars in the US, the potential
for growth is significant. Brazil’s auto
sales hit a record high in 2012, growing
by over 6% from 2011 to reach over
3.6 million vehicles (excluding trucks
and buses).
Demand is being boosted by reduced
industrial products tax and an increase
in financed car purchases. As shown
in Figure 5, a range of foreign
manufacturers including Fiat and
Volkswagen have a significant market
share for their locally-produced vehicles
and are investing heavily to develop
local production capabilities.
5
Brazil M&A update
MergersAlliance2013
US$ billion
Electricity
generation
Housing
Airports
Highways
Water and
sanitation
Railroads
Telecommunications
Energy including
Petrobras
21
23
27
31
33
38
58
400
2016 Summer
Olympic games
15
2014 World Cup 18
Ports 14
Figure 6: Over US$600 billion is being invested across
infrastructure projects by the Brazilian government
Source: Brazilian Statistics Bureau
- JCB, which has a factory in Brazil,
has won orders to provide over
1,000 backhoe loaders worth
around US$60 million
- Engineering consultant Arup, which
has two offices in Brazil, is working on
two venues for the Olympic Games
- Engineering and development
consultancy Mott MacDonald has
been involved in designing and
planning tolling systems, designing
construction supervision for new
highway communications systems
and developing control centres for
maintenance and rescue services
- Passenger simulation software
designed by Legion is being used
across a range of transport projects
across Brazil
“Arup has worked in Brazil for
years, but previously we used
project offices set up to
deliver specific schemes.
The opening of the new
permanent offices in Rio
and São Paulo plants a clear
marker that we are here to
stay and that we believe
there is a strong future for
Arup in this country.”
Ricardo Pittella, Arup’s Country Director for Brazil
Source: Arup press release
6
Brazil M&A update
MergersAlliance2013
BroadSpan is the Brazilian partner
of Mergers Alliance. Leonardo
Antunes, BroadSpan’s Managing
Director has completed deals,
capital raising and project
finance worth over US$15 billion in South America.
He discusses M&A trends and provides insights
into how foreign companies are entering Brazil.
BroadSpan is helping a range of investors access
opportunities in Brazil
We are currently working with both public and private
foreign companies, as well as private equity who
recognise that they need to supplement their expertise
with local specialists who have significant strategic and
transaction experience. Most inbound interest is currently
coming from the US, UK, France and Spain.
M&A activity is focused on three key areas
Companies based in the low growth developed
economies are being forced to look to faster growing
countries like Brazil for opportunities. Developed
economies have mature industrial sectors, sophisticated
business services providers and leading consumer
brands. Companies in these areas are taking advantage
of the scale of investment being made across Brazil’s
infrastructure and energy supply chain, and the spending
power of the rapidly increasing middle class. This is being
reflected in M&A activity (see page 8).
While the mega deals grab the headlines, there is a lot of
activity by large and mid-sized foreign players acquiring
smaller niche players such UK-based Intertek, which
recently acquired an 85% stake in Brazilian toy and
consumer products testing laboratory E-Test for
US$9.9 million.
Using a local advisor is critical to developing and
implementing the right market entry strategy
The operating environment for businesses in Brazil is
complex and poor advice will lead to costly delays and
missed opportunities. It’s vital that companies work with a
local advisor who is able to use their market insight and
personal relationships with companies and the
government to help formulate the right entry
strategy, use their expertise to evaluate the best local
opportunities and deliver a transaction successfully.
Potential acquirers need to consider issues
specific to Brazil
Around 90% of businesses in Brazil are family-owned
and many will not have considered an exit strategy.
This presents challenges to potential overseas acquirers.
It is common for these businesses to maintain two sets
of books and for results to be unaudited. High taxes
based on revenue rather than profit mean owner-
managers are careful about what they declare to the
tax authorities. But this often creates a valuation gap
with an overseas buyer because of the difference
between the declared profit and the actual profit.
BroadSpan has significant experience of creating
deal structures which recognise fair value and
meet the governance standards demanded
by overseas buyers.
Different sectors have specific legislation
and tax rules
Foreign corporates need to be aware of the specific
requirements associated with operating in Brazil which
govern a range of issues including the level of foreign
ownership permitted, local content and licensing
requirements and taxation and employment practices.
For example, Brazil has multiple taxation regimes with
different levels of taxing authorities. Tax laws change
frequently, so it’s not unusual for companies and
their advisors to work with more than one tax specialist.
The status of employees can also raise issues, especially
in the business services sector and consulting in
particular. For example, to reduce employment taxes
many employees in the service sector are contractors but
if an acquirer wants to make employees permanent post-
deal, this may trigger historic payroll tax and social
security liabilities (see Case study on page 7).
To protect overseas acquirers from claims, Sale &
Purchase Agreements tend to include a higher number
of indemnification clauses than an overseas acquirer
might be used to.
A perspective on M&A trends and market entry strategies
7
Brazil M&A update
MergersAlliance2013
Undertaking rigorous due diligence is especially
important in Brazil
We always try to identify and qualify potential issues for
our clients in advance of commencing full diligence to
avoid surprises and gain early visibility of those areas
which may have a significant impact on the value and
the transaction process.
Should a client wish to proceed and given the issues
discussed earlier, due diligence is critical and can uncover
issues such as liabilities associated with existing litigation
and potential claims, which affect the valuation of a target
and potentially negotiations.
Ensure the acquisition structure is tax efficient
Acquirers need to engage early with tax and legal
specialists to ensure a transaction is structured to
repatriate dividends and earnings in the most tax efficient
way possible. Brazil has signed double tax treaties with
only a handful of countries and so holding companies and
investment vehicles are often located in jurisdictions
like the Netherlands.
New pre-merger review requirement affects
transaction planning
New competition laws introduced in 2012 are potentially a
significant hurdle for cross-border transactions. Under the
previous notification process, transactions could be
completed before CADE (Administrative Council for
Economic Defense) had given its approval. Now reportable
transactions (one party has turnover in Brazil of
approximately US$400 million and the other US$40 million)
need to receive CADE’s approval before a transaction can
complete. The waiting period for a reportable transaction
to be reviewed can be up to 330 days. As yet there is
no fast track process, although to date “non-complex”
transactions have been cleared in around 18 days.
Although this creates uncertainty for the vendor and
acquirer, the new process removes the possibility of
post-merger remedial action.
The new notification and approvals process needs to
be factored into the timetable planning for a transaction,
especially as the information required in a notification
form for a complex transaction is considerable.
Companies prefer to create joint ventures or
acquire a majority position
Most companies prefer to enter the market via a joint
venture or through a majority stake acquisition. Deal
structures range from 50% to 80% and can include a path
to full ownership over a two to four year period. The scale
of a foreign company’s first acquisition varies with some
preferring to make smaller acquisitions in order to
understand the market better before making a larger
move. Our experience suggests that a staggered
approach to full ownership helps to align the interests
of a company’s founder or shareholders.
Outlook for foreign investors over the next
12 months is positive
The upcoming World Cup and Olympics, rising purchasing
power of the middle class and range of government-
supported growth measures means Brazil has the
attention of global corporates and investors looking for
strategic growth. This will drive increasing competition for
high quality assets and stimulate inbound, outbound and
domestic M&A.
Case study: Accenture’s acquisition of RiskControl
BroadSpan advised RiskControl, a privately held
risk consulting company based in Rio de Janeiro,
on its recent sale to US consulting and technology
services company Accenture.
Reason for acquisition
The acquisition complemented and expanded
Accenture’s risk service in the rapidly growing
Brazilian market. It also gave Accenture access to the
end-to-end software tool RiskControl, a software
platform that helps companies manage, monitor and
evaluate risks throughout their business.
How the deal was transacted
BroadSpan navigated through complex deal structures
which addressed issues associated with contingent
workers including contractors and permanent
employees in order to maximize RiskControl's value.
8
Brazil M&A update
180
160
140
120
100
80
60
40
20
60,000
50,000
40,000
30,000
20,000
10,000
00
Numberofdeals
Disclosedvalue(BRLmillion)
Industrials
Inform
ation
Technology
Real Estate
Financials
Food
&
Drink
H
ealthcare
Business
Services
C
onsum
er Products
U
tilities
N
atural resources
Energy
C
onstruction
Deals
Disclosed Value (RHS)
Figure 8: 2012 M&A activity by sector
Source: Mergers Alliance, Captial IQ
Strategic acquisitions
dominate activity
M&A has a
strategic focus
Total deal volumes have increased
year-on-year following a dip in 2009
(see Figure 7). There were 643 deals in
2012. Activity has a strategic focus as
foreign corporates look to enter Brazil
or increase their market share.
The industrials sector dominated
inbound activity in 2012 as foreign
corporates used acquisitions to take
advantage of the massive investment in
the energy and infrastructure sectors.
M&A activity in consumer-focused areas
including food and drink, healthcare and
financial services was also high (see
Figure 8). Foreign acquirers want to gain
access to rising consumer spending via
leading brands. M&A levels will remain
strong in these sectors in 2013.
Inbound investment M&A has been
characterised by the acquisition of
majority and minority stakes, as well
as full acquisitions (see Figure 9). For
example, US-based CVS Caremark
recently acquired a majority stake in
Drogaria Onofre, Brazil’s eighth largest
retail drugstore chain. The deal is CVS
Caremark’s first international acquisition
and will act as a platform for the
company to participate in the
consolidation of a fragmented sector.
2008 2009 2010 2011 2012
503
700
600
500
400
300
200
100
0
329
455
591
643
Figure 7: M&A activity in Brazil
(inbound, outbound and domestic)
Source: Mergers Alliance, Captial IQ
MergersAlliance2013
9
Brazil M&A update
By 2020, Brazil is aiming to be one of the world’s
top five oil producers. One third of global reserves
discovered in the last five years have been found
in Brazil, including the major find in the offshore
deepwater “pre-salt” layers.
Whilst legislation ensures that there will be a
significant amount of local content, Brazil needs the
expertise of international corporates to achieve its
production targets. This means there are significant
opportunities for foreign producers and suppliers.
Global majors working alongside sector giant
Petrobras
State-backed Petrobras accounts for around 90%
of Brazil’s total oil & gas production. It benefits from
regulatory advantages over other independent Brazilian
and foreign producers such as the requirement that it
will be the operator on all pre-salt oil fields.
Global oil & gas majors are committed to Brazil with
around 40 companies including Chevron, BG, BP,
Shell, Eni, Statoil, Total and ExxonMobil active in the
upstream market.
US$400 billion investment programme underway
Petrobras is currently investing US$225 billion across the
supply chain to meet its goal of doubling production by
2020. Major investment is also being made by leading
independent producers OGX, Cosan and Queiroz Galvão
in their exploration and production capabilities.
The Round 11 Auctions to be held in May 2013 (which
will include 289 exploration blocks) and Pre-Salt and Shale
Gas bidding rounds later in the year will increase the
penetration of foreign majors, increase investment and
boost M&A. Leading tier 1 suppliers like GE, Aker
and Cameron have established a local presence and
are positioning themselves to win a share of the spend.
Market entry strategies influenced by local
regulations
Petrobras approved suppliers’ register: Companies
awarded contracts and orders directly from Petrobras are
chosen from the company’s supplier Approval Register.
Acquisitions and joint ventures are often the easiest way
to enter the register. There are over 5,500 companies
on Petrobras’ supplier register so significant M&A
opportunities exist. For example, in 2011 UK-based
Hydrasun acquired Remaq Ltda, a Brazil-based provider
of flexible hose assemblies which had a proven record
with Petrobras.
Local content regulations: Goods and services used in
the oil & gas industry must have a significant level of “local
content”. Joint ventures enable international companies
to ensure that they meet this requirement. For example,
French oil service company Technip and Brazilian services
provider Odebrecht agreed a joint venture which won a
five-year contract estimated to be worth US$1 billion to
supply two pipeline installation ships to Petrobras.
Opportunity Lead supplier Support supplier
Offshore oil drilling facilities need
constant supplies during and
after construction
Petrobras estimates it will need
235 support vessels by 2020
Brazil’s Wilson Sons provides services
within shipbuilding and shipping. It
has a service contract with Petrobras
to transport supplies
Netherlands-based Damen Shipyards is
building new tugs (in Brazil) and providing
offshore supply vessels (OSV) to Wilson
Sons. OSV engines include Caterpillar
generator sets that power Rolls Royce
azimuth thrusters
Offshore drilling vessels
Petrobas needs over 30 new
drilling vessels
Singapore’s Sembcorp Marine’s
wholly-owned Brazilian shipyard
Estaleiro Jurong Aracruz secured a
US$793 million contract from
Guarapari Drilling BV, Netherlands, a
subsidiary of Sete Brasil Participacões
Austria-based Palfinger Dreggen has a
US$121 million contract to supply cranes
to the Jurong Shipyard
Selected opportunities in the subsea exploration & production supply chain
Source: Mergers Alliance, company press releases
Servicing
Drilling vessels
A major offshore oil and gas frontier
MergersAlliance2013
10
Brazil M&A update
Find out more
Specialist advice on call…
For information on Brazil
Leonardo Antunes
Managing Director, BroadSpan Capital
Location: Rio de Janeiro
Telephone: +55 21 2543 5409
Email: lantunes@brocap.com
Leonardo is Managing Director of BroadSpan.
His experience covers a range of sectors including
power, oil & gas, mining, technology and healthcare.
He has executed over 30 advisory transactions with a
value in excess of US$10 billion and over US$5 billion
in fund raising and project finance transactions.
Prior to joining BroadSpan, Leonardo was responsible for
M&A, capital markets and project finance transactions in
Banco Modal and Vice Preside Corporate Finance and
Structured Finance for Latin America at ABN AMRO.
Languages spoken: English, Portuguese and Spanish
Michael Gerrard
Managing Director, BroadSpan Capital
Location: Miami
Telephone: +1 (305) 424 3400
Email: mgerrard@brocap.com
Michael is a founder and Managing Director of BroadSpan
Capital. He has overseen a variety of M&A and restructuring
assignments and taken an active role in the development of
BroadSpan Asset Management LLC, the firm's asset
management subsidiary.
Before founding BroadSpan, Michael headed the Latin
American Capital Markets division at Barclays Capital where he
was responsible for capital markets origination and execution
for a range of products. While with Barclays, Michael executed
over US$3.5 billion of international capital markets financings
for Latin American issuers.
Languages spoken: English, Portuguese and Spanish
Private equity
investment
Private equity is an important driver
of M&A in Brazil with deal volume over
the last ten years worth around
US$22 billion.
Both domestic and international PE are
focusing on companies benefiting from
the growing spending power of the
middle class. For example, in 2012
Brazil’s BTG Pactual acquired clothing
retail store Leader Magazine for
US$274 million in 2012, US-based
Carlyle Group acquired furniture store
Tok & Stok for US$348 million and
UK-based 3i Group has recently led a
consortium which has acquired Óticas
Carol, Brazil’s second largest eyewear
retailer, for US$54 million. Activity will
continue to be strong in 2013.
Large foreign institutional investors
are also attracted to investment
opportunities. For example, Ontario
Teachers’ Pension Plan holds a 12.5%
stake in Brazilian iron-ore company
Manabi Holding and Canada’s Public
Sector Pension Investment Board has
acquired a stake in Isolux Infrastructure
for US$402 million.
Exit activity includes trade sales,
secondary buyouts and initial public
offering. Stratus Group, a Brazilian
mid-market private equity investor,
listed technology service provider
Senior Solution in 2012 and car rental
company Locamerica, backed by the
private equity arm of Banco Votorantim,
floated in April 2012.
Private equity has a
successful record
in Brazil
MergersAlliance2013
11
Brazil M&A update
Date Target company Country Target Activities Acquirer Country Deal value
(US$ mm)
Mar-13 E-Test Laboratorio de Ensaio (85% Stake) Brazil Toy testing and related services Intertek Group plc United Kingdom 10.3
Feb-13 Drogaria Onofre Ltda Brazil Distributor of healthcare and personal care products CVS Caremark Corporation USA NA
Jan-13 UAB Motors Participacoes S.A. Brazil Automotive retailer Group 1 Automotive, Inc. USA 207.5
Dec-12 Vivo Participacoes, S.A. (800 towers in Brazil) Brazil 800 free-standing, ground- based towers SBA Communications
Corporation
USA 176.8
Dec-12 Repom S.A. (62% Stake) Brazil Computer facilities management solutions for trucks Edenred SA France 69.8
Dec-12 Bunge Limited (Fertilizer Business in Brazil) Brazil Fertilizer business of Bunge Limited Yara International ASA Norway 750.0
Dec-12 XP Investimentos CCTVM SA (31% Stake) Brazil Brokerage and insurance house involved in
corporate financial education
General Atlantic LLC USA 230.8
Nov-12 Orbus Pharma S.A.S.; Flores Ervas;
ApodanNordic PharmaPackaging a/s
Brazil Supplies pharmaceutical extracts and tinctures Fagron BV Netherlands 26.0
Oct-12 Jari Celulose S.A. (Industrial
packaging assets) (75% Stake)
Brazil Containerboard mills and box plants of
Jari Celulose S.A.
International Paper Company USA 596.0
Oct-12 Serasa S.A. (29.6% Stake) Brazil Credit, economic and financial analysis and
information company
Experian Plc United Kingdon 1,500.0
Oct-12 Amil Participacoes SA (90% Stake) Brazil Health care services company UnitedHealth Group Inc USA 3,945.0
Sep-12 Kromav Engenharia Ltda. (50% Stake) Brazil Offshore oil and gas and marine engineering company Amec Plc United Kingdom 12.5
Sep-12 Carvajal Empaques S.A. (folding
carton production plant in Brazil)
Brazil Folding carton producing plant of
Carvajal Empaques S.A.
Mayr Melnhof Packaging
International GmbH
Austria 15
Sep-12 Tok & Stok Ltda. (60% Stake) Brazil Furniture retailer The Carlyle Group, LLC USA 346.5
Aug-12 Manabi Holding S.A. Brazil Iron ore exploration Ontario Teachers' Pension Plan;
EIG Global Energy Partners
USA; Canada 301.1
Aug-12 Tortuga Companhia Zootecnica Agraria Brazil Agribusiness and providing animal feed Royal DSM N.V. Netherlands 575.1
Aug-12 ETEP Consultoria, Gerenciamento e
Servicos Ltda.
Brazil Water engineering and consultancy Arcadis NV Netherlands NA
Aug-12 Asseio Saneamento Ambiental Ltda. Brazil Pest control company Rentokil Initial Plc United Kingdom NA
Jul-12 Rubaiyat (70% Stake) Brazil Restaurant chain Mercapital, S.L. Spain 56.9
Jul-12 Grupo Posadas (South American
hotels portfolio)
Brazil Hotel operator Accor SA France 275.0
Jul-12 Lamiflex do Brasil Equipamentos
Industriais Ltda (85% Stake)
Brazil Manufacturer and distributor of power transmission
equipments
Altra Industrial Motion
Netherlands BV
Netherlands 8.5
Jul-12 Usina Fortaleza Industria e
Comercio de Massa Fina Ltda.
Brazil Manufacturer of materials and
quality adhesives
Bostik, Inc. USA NA
Jul-12 Rheoset Industria e Comercio de
Aditivos Ltda.
Brazil Manufactures admixture concrete products W. R. Grace & Co. USA NA
Jul-12 Neogama | BBH Brazil Advertising agency Publicis Groupe SA France NA
Jul-12 CP Eletronica SA Brazil Manufactures power systems for data centers,
hospitals, and businesses
Schneider Electric SA France NA
Jul-12 Isolux Infrastructure S.A. (undisclosed stake) Brazil Operates as a construction and
engineering company
Public Sector Pension
Investment Board
Canada 754.5
Jun-12 Watercryl Quimica Ltda. Brazil Provides coatings solutions Elementis Plc United Kingdom 24.0
Jun-12 Folhamatic Tecnologia em Sistemas S.A.
(75% Stake)
Brazil Provides accounting, tax and payroll and regulatory
content software
The Sage Group Plc United Kingdom 196.8
May-12 Brasil Online Holdings (21% Stake) Brazil Provides online employment services SEEK Limited Australia 78.8
May-12 ACS Actividades de Construccion y
Servicios, S.A. (Seven electric power
Brazil Electric power transmission lines operated by ACS
Actividades de Construccion y Servicios, S.A.
State Grid Corporation of China China 942.2
May-12 Ypioca Agroindustrial (Ypioca brand
and other production assets)
Brazil Ypioca brand and other production assets
of Ypioca Agroindustrial
Diageo Plc United Kingdom 454.6
May-12 Neodent (49% Stake) Brazil Manufactures dental implants and related
prosthetic components
Straumann Holding AG Switzerland 275.3
Apr-12 Negocios nos Trilhos Participacoes Ltda Brazil Cargo and rail business tradeshow organizer United Business Media Limited United Kingdom NA
Apr-12 Telcon Fios E Cabos Para
Telecomunicacoes S/A (50% Stake)
Brazil Manufacturer of copper wires, and cables for
telecommunication, data and TV cabling markets
Prysmian Cables & Systems Italy 27.4
Temporary power supplierMar-12 Companha Brasileira de Locacoes Brazil Aggreko Plc United Kingdom 256.4
64.4Mar-12 Transbank; Nordeste Seguranca Brazil Security company specialising in cash in transit,
guarding and technology
Prosegur Compania de
Seguridad, S.A.
Spain
Figure 9: Selected M&A transactions
Source: Mergers Alliance, Captial IQ
MergersAlliance2013
www.mergers-alliance.com
MergersAlliance2013
BroadSpan and the Mergers Alliance partners are expertly placed
to offer advice.
In particular, we offer:
Advice on structuring and completing deals in Brazil
Identifying acquisition opportunities around the world
Information on sector trends and valuations
Access to corporate decision-makers and owners
Join in the mergers and acquisitions discussion
Australia
Austria
Belgium
Brazil
Bulgaria
Canada
China
Colombia
Czech Republic
Denmark
Finland
France
Germany
India
Italy
Japan
Luxembourg
Mexico
Netherlands
Norway
Poland
Russia
Singapore
South Africa
Spain
Sweden
Switzerland
Turkey
UK
USA
Mergers Alliance is a group of award-winning corporate finance specialists
who provide high quality advice to organisations who require reach for
their International M&A strategies.
Global coverage
Leonardo Antunes
Managing Director, Rio de Janeiro
Contact: +55 21 2543 5409
lantunes@brocap.com
Felipe Monaco
Director, São Paulo
Contact: +55 11 4114 0247
fmonaco@brocap.com
Ricardo Sirotsky
Managing Director, Rio de Janeiro
Contact: +55 21 2543 5409
rsirotsky@brocap.com
Michael Gerrard
Managing Director, Miami
Contact: +1 (305) 424 3400
mgerrard@brocap.com
Derek Gallo
Director, São Paulo
Contact: +55 11 4114 0247
dgallo@brocap.com
Horacio Moreira Piedras Jr
Director, Rio de Janeiro
Contact: +55 21 2543 5409
hpiedras@brocap.com

Mais conteúdo relacionado

Mais procurados

Colombia Bring IT on
Colombia Bring IT on Colombia Bring IT on
Colombia Bring IT on ProColombia
 
Colombia Presentation 2018
Colombia Presentation 2018Colombia Presentation 2018
Colombia Presentation 2018ProColombia
 
Covid-19 and the automotive sector in CEE economies
Covid-19 and the automotive sector in CEE economies Covid-19 and the automotive sector in CEE economies
Covid-19 and the automotive sector in CEE economies OECD Berlin Centre
 
Two Ways the Auto Industry Can Beat Possible Slowdown in 2018
Two Ways the Auto Industry Can Beat Possible Slowdown in 2018Two Ways the Auto Industry Can Beat Possible Slowdown in 2018
Two Ways the Auto Industry Can Beat Possible Slowdown in 2018Jean_Lyles
 
Software sector study - nov 2017
Software sector study - nov 2017Software sector study - nov 2017
Software sector study - nov 2017Adrian Bacaianu
 
Mercer Capital's Value Focus: Transportation & Logistics | Q1 2019 | Feature...
Mercer Capital's Value Focus: Transportation & Logistics  | Q1 2019 | Feature...Mercer Capital's Value Focus: Transportation & Logistics  | Q1 2019 | Feature...
Mercer Capital's Value Focus: Transportation & Logistics | Q1 2019 | Feature...Mercer Capital
 
Mergers Alliance NORGESTION: "Country Report Spain. M&A Update. Autumn 2013"
Mergers Alliance NORGESTION: "Country Report Spain. M&A Update. Autumn 2013"Mergers Alliance NORGESTION: "Country Report Spain. M&A Update. Autumn 2013"
Mergers Alliance NORGESTION: "Country Report Spain. M&A Update. Autumn 2013"NORGESTION
 
Global Truck Transport Market Competitive Strategies And Forecasts To 2030
Global Truck Transport Market Competitive Strategies And Forecasts To 2030Global Truck Transport Market Competitive Strategies And Forecasts To 2030
Global Truck Transport Market Competitive Strategies And Forecasts To 2030RamachariTBRC
 
Automotive sector| What's Next| January 2019
Automotive sector|   What's Next| January 2019Automotive sector|   What's Next| January 2019
Automotive sector| What's Next| January 2019paul young cpa, cga
 
Investment in cosmetics and personal care products
Investment in cosmetics and personal care productsInvestment in cosmetics and personal care products
Investment in cosmetics and personal care productsProColombia
 
Dr Dev Kambhampati | Doing Business in Hungary- 2014 Country Commercial Guide...
Dr Dev Kambhampati | Doing Business in Hungary- 2014 Country Commercial Guide...Dr Dev Kambhampati | Doing Business in Hungary- 2014 Country Commercial Guide...
Dr Dev Kambhampati | Doing Business in Hungary- 2014 Country Commercial Guide...Dr Dev Kambhampati
 
What's next for Automotive| North America and the World| January 2019
What's next for Automotive| North America and the World| January 2019What's next for Automotive| North America and the World| January 2019
What's next for Automotive| North America and the World| January 2019paul young cpa, cga
 
Brochure Impact Sourcing
Brochure Impact SourcingBrochure Impact Sourcing
Brochure Impact SourcingProColombia
 
Romanian Business Information Market
Romanian Business Information MarketRomanian Business Information Market
Romanian Business Information MarketKeysFin
 
Software and it services sector 2016
Software and it services sector 2016Software and it services sector 2016
Software and it services sector 2016ProColombia
 
Corp open innovation challenge mwc 2022
Corp open innovation challenge mwc 2022Corp open innovation challenge mwc 2022
Corp open innovation challenge mwc 2022Núria Soler Zurita
 
Africa's Development Dynamics 2018 from OECD
Africa's Development Dynamics 2018 from OECDAfrica's Development Dynamics 2018 from OECD
Africa's Development Dynamics 2018 from OECDThe Royal African Society
 

Mais procurados (20)

Colombia Bring IT on
Colombia Bring IT on Colombia Bring IT on
Colombia Bring IT on
 
Colombia Presentation 2018
Colombia Presentation 2018Colombia Presentation 2018
Colombia Presentation 2018
 
Covid-19 and the automotive sector in CEE economies
Covid-19 and the automotive sector in CEE economies Covid-19 and the automotive sector in CEE economies
Covid-19 and the automotive sector in CEE economies
 
Two Ways the Auto Industry Can Beat Possible Slowdown in 2018
Two Ways the Auto Industry Can Beat Possible Slowdown in 2018Two Ways the Auto Industry Can Beat Possible Slowdown in 2018
Two Ways the Auto Industry Can Beat Possible Slowdown in 2018
 
firm analysis
firm analysisfirm analysis
firm analysis
 
Software sector study - nov 2017
Software sector study - nov 2017Software sector study - nov 2017
Software sector study - nov 2017
 
Mercer Capital's Value Focus: Transportation & Logistics | Q1 2019 | Feature...
Mercer Capital's Value Focus: Transportation & Logistics  | Q1 2019 | Feature...Mercer Capital's Value Focus: Transportation & Logistics  | Q1 2019 | Feature...
Mercer Capital's Value Focus: Transportation & Logistics | Q1 2019 | Feature...
 
Mergers Alliance NORGESTION: "Country Report Spain. M&A Update. Autumn 2013"
Mergers Alliance NORGESTION: "Country Report Spain. M&A Update. Autumn 2013"Mergers Alliance NORGESTION: "Country Report Spain. M&A Update. Autumn 2013"
Mergers Alliance NORGESTION: "Country Report Spain. M&A Update. Autumn 2013"
 
Global Truck Transport Market Competitive Strategies And Forecasts To 2030
Global Truck Transport Market Competitive Strategies And Forecasts To 2030Global Truck Transport Market Competitive Strategies And Forecasts To 2030
Global Truck Transport Market Competitive Strategies And Forecasts To 2030
 
Automotive sector| What's Next| January 2019
Automotive sector|   What's Next| January 2019Automotive sector|   What's Next| January 2019
Automotive sector| What's Next| January 2019
 
Investment in cosmetics and personal care products
Investment in cosmetics and personal care productsInvestment in cosmetics and personal care products
Investment in cosmetics and personal care products
 
Aircraft wheels market
Aircraft wheels marketAircraft wheels market
Aircraft wheels market
 
Dr Dev Kambhampati | Doing Business in Hungary- 2014 Country Commercial Guide...
Dr Dev Kambhampati | Doing Business in Hungary- 2014 Country Commercial Guide...Dr Dev Kambhampati | Doing Business in Hungary- 2014 Country Commercial Guide...
Dr Dev Kambhampati | Doing Business in Hungary- 2014 Country Commercial Guide...
 
What's next for Automotive| North America and the World| January 2019
What's next for Automotive| North America and the World| January 2019What's next for Automotive| North America and the World| January 2019
What's next for Automotive| North America and the World| January 2019
 
Brochure Impact Sourcing
Brochure Impact SourcingBrochure Impact Sourcing
Brochure Impact Sourcing
 
Romanian Business Information Market
Romanian Business Information MarketRomanian Business Information Market
Romanian Business Information Market
 
Automotive Sector - May 2018
Automotive Sector -   May 2018Automotive Sector -   May 2018
Automotive Sector - May 2018
 
Software and it services sector 2016
Software and it services sector 2016Software and it services sector 2016
Software and it services sector 2016
 
Corp open innovation challenge mwc 2022
Corp open innovation challenge mwc 2022Corp open innovation challenge mwc 2022
Corp open innovation challenge mwc 2022
 
Africa's Development Dynamics 2018 from OECD
Africa's Development Dynamics 2018 from OECDAfrica's Development Dynamics 2018 from OECD
Africa's Development Dynamics 2018 from OECD
 

Destaque

Analysis of pendulum’s digipak
Analysis of pendulum’s digipakAnalysis of pendulum’s digipak
Analysis of pendulum’s digipakMini Burton
 
Молчанов д
Молчанов дМолчанов д
Молчанов дOlena Ursu
 
J. bukowczan dopalacze v1.0
J. bukowczan dopalacze v1.0J. bukowczan dopalacze v1.0
J. bukowczan dopalacze v1.0Jerzy_BN
 
Soracom & myThingsを使ったハンズオンセミナーをやってみた
Soracom & myThingsを使ったハンズオンセミナーをやってみたSoracom & myThingsを使ったハンズオンセミナーをやってみた
Soracom & myThingsを使ったハンズオンセミナーをやってみたKenichi Yoshida
 
Global sportwear sector m&a update. spring 2013. norgestion mergers alliance
Global sportwear sector m&a update. spring 2013. norgestion mergers allianceGlobal sportwear sector m&a update. spring 2013. norgestion mergers alliance
Global sportwear sector m&a update. spring 2013. norgestion mergers allianceNORGESTION
 
Yourprezisistemamuscular
YourprezisistemamuscularYourprezisistemamuscular
YourprezisistemamuscularAniuska Jimenez
 
Connecting Ideas and Summing Up
Connecting Ideas and Summing UpConnecting Ideas and Summing Up
Connecting Ideas and Summing UpAira Grace Atabay
 
Ways of Working in the Networked Society - The Mental Leaps at Ericsson 3G
Ways of Working in the Networked Society - The Mental Leaps at Ericsson 3GWays of Working in the Networked Society - The Mental Leaps at Ericsson 3G
Ways of Working in the Networked Society - The Mental Leaps at Ericsson 3GErik Schön
 
Cadburys celebrationsppt antriksh
Cadburys celebrationsppt antrikshCadburys celebrationsppt antriksh
Cadburys celebrationsppt antrikshAntriksh Chopra
 
Ccs 8 aprile informatica sunto
Ccs 8 aprile informatica  suntoCcs 8 aprile informatica  sunto
Ccs 8 aprile informatica suntoMichele Alberto
 
(Eng) part i of ccs ppt
(Eng) part i of ccs ppt(Eng) part i of ccs ppt
(Eng) part i of ccs pptOlena Ursu
 
О современных информационных технологиях
О современных информационных технологияхО современных информационных технологиях
О современных информационных технологияхAlexey Vidanov
 
Cocaine cloud administration at YaC
Cocaine cloud administration at YaCCocaine cloud administration at YaC
Cocaine cloud administration at YaCDenis Zaitsev
 

Destaque (20)

Analysis of pendulum’s digipak
Analysis of pendulum’s digipakAnalysis of pendulum’s digipak
Analysis of pendulum’s digipak
 
Prasina epagg for_internet
Prasina epagg for_internetPrasina epagg for_internet
Prasina epagg for_internet
 
Basics of Silverlight 2
Basics of Silverlight 2Basics of Silverlight 2
Basics of Silverlight 2
 
Молчанов д
Молчанов дМолчанов д
Молчанов д
 
J. bukowczan dopalacze v1.0
J. bukowczan dopalacze v1.0J. bukowczan dopalacze v1.0
J. bukowczan dopalacze v1.0
 
Soracom & myThingsを使ったハンズオンセミナーをやってみた
Soracom & myThingsを使ったハンズオンセミナーをやってみたSoracom & myThingsを使ったハンズオンセミナーをやってみた
Soracom & myThingsを使ったハンズオンセミナーをやってみた
 
CMHC Kingston 2012
CMHC Kingston 2012CMHC Kingston 2012
CMHC Kingston 2012
 
Global sportwear sector m&a update. spring 2013. norgestion mergers alliance
Global sportwear sector m&a update. spring 2013. norgestion mergers allianceGlobal sportwear sector m&a update. spring 2013. norgestion mergers alliance
Global sportwear sector m&a update. spring 2013. norgestion mergers alliance
 
Western Avenue
Western AvenueWestern Avenue
Western Avenue
 
Yourprezisistemamuscular
YourprezisistemamuscularYourprezisistemamuscular
Yourprezisistemamuscular
 
Connecting Ideas and Summing Up
Connecting Ideas and Summing UpConnecting Ideas and Summing Up
Connecting Ideas and Summing Up
 
Ways of Working in the Networked Society - The Mental Leaps at Ericsson 3G
Ways of Working in the Networked Society - The Mental Leaps at Ericsson 3GWays of Working in the Networked Society - The Mental Leaps at Ericsson 3G
Ways of Working in the Networked Society - The Mental Leaps at Ericsson 3G
 
Oklahoma place making leinberger
Oklahoma place making leinbergerOklahoma place making leinberger
Oklahoma place making leinberger
 
Cadburys celebrationsppt antriksh
Cadburys celebrationsppt antrikshCadburys celebrationsppt antriksh
Cadburys celebrationsppt antriksh
 
Danulyuk
DanulyukDanulyuk
Danulyuk
 
Ccs 8 aprile informatica sunto
Ccs 8 aprile informatica  suntoCcs 8 aprile informatica  sunto
Ccs 8 aprile informatica sunto
 
(Eng) part i of ccs ppt
(Eng) part i of ccs ppt(Eng) part i of ccs ppt
(Eng) part i of ccs ppt
 
О современных информационных технологиях
О современных информационных технологияхО современных информационных технологиях
О современных информационных технологиях
 
Cocaine cloud administration at YaC
Cocaine cloud administration at YaCCocaine cloud administration at YaC
Cocaine cloud administration at YaC
 
Sujana gole
Sujana goleSujana gole
Sujana gole
 

Semelhante a Country report brazil. m&a update. spring 2013. norgestion mergers alliance

Mandala gp presentation to CAP Delegates , Aug 2013
Mandala gp   presentation to CAP Delegates , Aug 2013Mandala gp   presentation to CAP Delegates , Aug 2013
Mandala gp presentation to CAP Delegates , Aug 2013Paola Saad, MBA
 
Boundless Opportunity June 2014 Whitepaper from Regus.
Boundless Opportunity June 2014 Whitepaper from Regus. Boundless Opportunity June 2014 Whitepaper from Regus.
Boundless Opportunity June 2014 Whitepaper from Regus. Regus
 
UKTI_Brazilian_Private_Equity_Report-FINAL
UKTI_Brazilian_Private_Equity_Report-FINALUKTI_Brazilian_Private_Equity_Report-FINAL
UKTI_Brazilian_Private_Equity_Report-FINALPeter Thorpe
 
0. Digital economy_SEA_2022_report_Google.pptx
0. Digital economy_SEA_2022_report_Google.pptx0. Digital economy_SEA_2022_report_Google.pptx
0. Digital economy_SEA_2022_report_Google.pptxssuser3d845f
 
Brazil igly serafim ppt combined 09 01 2010
Brazil igly serafim ppt combined 09 01 2010Brazil igly serafim ppt combined 09 01 2010
Brazil igly serafim ppt combined 09 01 2010The Infomation Company
 
Brazil Transaction Insights Q3 2019 By Duff & Phelps
Brazil Transaction Insights Q3 2019 By Duff & Phelps Brazil Transaction Insights Q3 2019 By Duff & Phelps
Brazil Transaction Insights Q3 2019 By Duff & Phelps Ana Lucia Amaral
 
The investment potential of growth capital and the digital economy
The investment potential of growth capital and the digital economyThe investment potential of growth capital and the digital economy
The investment potential of growth capital and the digital economyAxon Partners Group
 
Meet the 2014 BCG Global Challengers (2)
Meet the 2014 BCG Global Challengers (2)Meet the 2014 BCG Global Challengers (2)
Meet the 2014 BCG Global Challengers (2)Vivek Singh
 
Strengthening Trade and Investment Ties
Strengthening Trade and Investment Ties Strengthening Trade and Investment Ties
Strengthening Trade and Investment Ties JohnsonAtCornell
 
EY Attractiveness Report Brazil Capturing The Momentum August 2012
EY Attractiveness Report Brazil Capturing The Momentum August 2012EY Attractiveness Report Brazil Capturing The Momentum August 2012
EY Attractiveness Report Brazil Capturing The Momentum August 2012Stephan Kuester
 
Conf call 4t13_140213_eng
Conf call 4t13_140213_engConf call 4t13_140213_eng
Conf call 4t13_140213_engBraskem_RI
 
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades...
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades...Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades...
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades...Palácio do Planalto
 
How to understand_legal_aspects_on_doing_infrastructure_business_in_brazil
How to understand_legal_aspects_on_doing_infrastructure_business_in_brazilHow to understand_legal_aspects_on_doing_infrastructure_business_in_brazil
How to understand_legal_aspects_on_doing_infrastructure_business_in_brazilThe Information Company
 

Semelhante a Country report brazil. m&a update. spring 2013. norgestion mergers alliance (20)

Mandala gp presentation to CAP Delegates , Aug 2013
Mandala gp   presentation to CAP Delegates , Aug 2013Mandala gp   presentation to CAP Delegates , Aug 2013
Mandala gp presentation to CAP Delegates , Aug 2013
 
Economic Capsule - November 2019
Economic Capsule - November 2019Economic Capsule - November 2019
Economic Capsule - November 2019
 
Boundless Opportunity June 2014 Whitepaper from Regus.
Boundless Opportunity June 2014 Whitepaper from Regus. Boundless Opportunity June 2014 Whitepaper from Regus.
Boundless Opportunity June 2014 Whitepaper from Regus.
 
Como abrir uma empresa no brasil pela amcham
Como abrir uma empresa no brasil pela amcham Como abrir uma empresa no brasil pela amcham
Como abrir uma empresa no brasil pela amcham
 
Como abrir uma empresa no brasil pela Amcham
Como abrir uma empresa no brasil pela Amcham Como abrir uma empresa no brasil pela Amcham
Como abrir uma empresa no brasil pela Amcham
 
UKTI_Brazilian_Private_Equity_Report-FINAL
UKTI_Brazilian_Private_Equity_Report-FINALUKTI_Brazilian_Private_Equity_Report-FINAL
UKTI_Brazilian_Private_Equity_Report-FINAL
 
SAF_brazil_6.29.15
SAF_brazil_6.29.15SAF_brazil_6.29.15
SAF_brazil_6.29.15
 
Economies in 2018
Economies in 2018Economies in 2018
Economies in 2018
 
Brazil7 Forbes
Brazil7 ForbesBrazil7 Forbes
Brazil7 Forbes
 
0. Digital economy_SEA_2022_report_Google.pptx
0. Digital economy_SEA_2022_report_Google.pptx0. Digital economy_SEA_2022_report_Google.pptx
0. Digital economy_SEA_2022_report_Google.pptx
 
Excellent Data About Brazil
Excellent Data About BrazilExcellent Data About Brazil
Excellent Data About Brazil
 
Brazil igly serafim ppt combined 09 01 2010
Brazil igly serafim ppt combined 09 01 2010Brazil igly serafim ppt combined 09 01 2010
Brazil igly serafim ppt combined 09 01 2010
 
Brazil Transaction Insights Q3 2019 By Duff & Phelps
Brazil Transaction Insights Q3 2019 By Duff & Phelps Brazil Transaction Insights Q3 2019 By Duff & Phelps
Brazil Transaction Insights Q3 2019 By Duff & Phelps
 
The investment potential of growth capital and the digital economy
The investment potential of growth capital and the digital economyThe investment potential of growth capital and the digital economy
The investment potential of growth capital and the digital economy
 
Meet the 2014 BCG Global Challengers (2)
Meet the 2014 BCG Global Challengers (2)Meet the 2014 BCG Global Challengers (2)
Meet the 2014 BCG Global Challengers (2)
 
Strengthening Trade and Investment Ties
Strengthening Trade and Investment Ties Strengthening Trade and Investment Ties
Strengthening Trade and Investment Ties
 
EY Attractiveness Report Brazil Capturing The Momentum August 2012
EY Attractiveness Report Brazil Capturing The Momentum August 2012EY Attractiveness Report Brazil Capturing The Momentum August 2012
EY Attractiveness Report Brazil Capturing The Momentum August 2012
 
Conf call 4t13_140213_eng
Conf call 4t13_140213_engConf call 4t13_140213_eng
Conf call 4t13_140213_eng
 
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades...
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades...Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades...
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades...
 
How to understand_legal_aspects_on_doing_infrastructure_business_in_brazil
How to understand_legal_aspects_on_doing_infrastructure_business_in_brazilHow to understand_legal_aspects_on_doing_infrastructure_business_in_brazil
How to understand_legal_aspects_on_doing_infrastructure_business_in_brazil
 

Mais de NORGESTION

Corporate Finance. Automotive Interiors M&A Update. Autumn 2014
Corporate Finance. Automotive Interiors M&A Update. Autumn 2014Corporate Finance. Automotive Interiors M&A Update. Autumn 2014
Corporate Finance. Automotive Interiors M&A Update. Autumn 2014NORGESTION
 
Global business process outsourcing m&a update. summer 2014. norgestion merge...
Global business process outsourcing m&a update. summer 2014. norgestion merge...Global business process outsourcing m&a update. summer 2014. norgestion merge...
Global business process outsourcing m&a update. summer 2014. norgestion merge...NORGESTION
 
Norgestion mergers & acquisitions 2013
Norgestion mergers & acquisitions 2013Norgestion mergers & acquisitions 2013
Norgestion mergers & acquisitions 2013NORGESTION
 
European Mid-Market 2013. Análisis de Maarten de Jongh tras la conferencia an...
European Mid-Market 2013. Análisis de Maarten de Jongh tras la conferencia an...European Mid-Market 2013. Análisis de Maarten de Jongh tras la conferencia an...
European Mid-Market 2013. Análisis de Maarten de Jongh tras la conferencia an...NORGESTION
 
Igor Gorostiaga, Socio Responsable del Departamento de Corporate Finance de N...
Igor Gorostiaga, Socio Responsable del Departamento de Corporate Finance de N...Igor Gorostiaga, Socio Responsable del Departamento de Corporate Finance de N...
Igor Gorostiaga, Socio Responsable del Departamento de Corporate Finance de N...NORGESTION
 
Brazil oil & gas. m&a update. spring 2013. norgestion mergers alliance
Brazil oil & gas. m&a update. spring 2013. norgestion mergers allianceBrazil oil & gas. m&a update. spring 2013. norgestion mergers alliance
Brazil oil & gas. m&a update. spring 2013. norgestion mergers allianceNORGESTION
 
NORGESTION Mergers Alliance. Igor Gorostiaga: Brasil Oil&Gas 2013
NORGESTION Mergers Alliance. Igor Gorostiaga: Brasil Oil&Gas 2013NORGESTION Mergers Alliance. Igor Gorostiaga: Brasil Oil&Gas 2013
NORGESTION Mergers Alliance. Igor Gorostiaga: Brasil Oil&Gas 2013NORGESTION
 

Mais de NORGESTION (7)

Corporate Finance. Automotive Interiors M&A Update. Autumn 2014
Corporate Finance. Automotive Interiors M&A Update. Autumn 2014Corporate Finance. Automotive Interiors M&A Update. Autumn 2014
Corporate Finance. Automotive Interiors M&A Update. Autumn 2014
 
Global business process outsourcing m&a update. summer 2014. norgestion merge...
Global business process outsourcing m&a update. summer 2014. norgestion merge...Global business process outsourcing m&a update. summer 2014. norgestion merge...
Global business process outsourcing m&a update. summer 2014. norgestion merge...
 
Norgestion mergers & acquisitions 2013
Norgestion mergers & acquisitions 2013Norgestion mergers & acquisitions 2013
Norgestion mergers & acquisitions 2013
 
European Mid-Market 2013. Análisis de Maarten de Jongh tras la conferencia an...
European Mid-Market 2013. Análisis de Maarten de Jongh tras la conferencia an...European Mid-Market 2013. Análisis de Maarten de Jongh tras la conferencia an...
European Mid-Market 2013. Análisis de Maarten de Jongh tras la conferencia an...
 
Igor Gorostiaga, Socio Responsable del Departamento de Corporate Finance de N...
Igor Gorostiaga, Socio Responsable del Departamento de Corporate Finance de N...Igor Gorostiaga, Socio Responsable del Departamento de Corporate Finance de N...
Igor Gorostiaga, Socio Responsable del Departamento de Corporate Finance de N...
 
Brazil oil & gas. m&a update. spring 2013. norgestion mergers alliance
Brazil oil & gas. m&a update. spring 2013. norgestion mergers allianceBrazil oil & gas. m&a update. spring 2013. norgestion mergers alliance
Brazil oil & gas. m&a update. spring 2013. norgestion mergers alliance
 
NORGESTION Mergers Alliance. Igor Gorostiaga: Brasil Oil&Gas 2013
NORGESTION Mergers Alliance. Igor Gorostiaga: Brasil Oil&Gas 2013NORGESTION Mergers Alliance. Igor Gorostiaga: Brasil Oil&Gas 2013
NORGESTION Mergers Alliance. Igor Gorostiaga: Brasil Oil&Gas 2013
 

Último

Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Entrepreneurship and individuals workshop
Entrepreneurship and individuals workshopEntrepreneurship and individuals workshop
Entrepreneurship and individuals workshopP&CO
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsP&CO
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלימיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגליBen Shushan & Co. C.P.A (Isr.)
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...Khaled Al Awadi
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
Transform Your Kitchen Essential Tips for Renovations in Launceston
Transform Your Kitchen Essential Tips for Renovations in LauncestonTransform Your Kitchen Essential Tips for Renovations in Launceston
Transform Your Kitchen Essential Tips for Renovations in Launcestondjhbuildersau
 

Último (20)

Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Entrepreneurship and individuals workshop
Entrepreneurship and individuals workshopEntrepreneurship and individuals workshop
Entrepreneurship and individuals workshop
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizations
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלימיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
AL Satwa Dubai Call Girls +971552825767 Call Girls In AL Karama
AL Satwa Dubai Call Girls +971552825767  Call Girls In AL KaramaAL Satwa Dubai Call Girls +971552825767  Call Girls In AL Karama
AL Satwa Dubai Call Girls +971552825767 Call Girls In AL Karama
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
Transform Your Kitchen Essential Tips for Renovations in Launceston
Transform Your Kitchen Essential Tips for Renovations in LauncestonTransform Your Kitchen Essential Tips for Renovations in Launceston
Transform Your Kitchen Essential Tips for Renovations in Launceston
 

Country report brazil. m&a update. spring 2013. norgestion mergers alliance

  • 1. Country Report - Brazil M&A update Spring 2013 Brazil is a strategic focus for foreign corporates. Its role as host of the 2014 FIFA World Cup and the 2016 Summer Olympic Games is acting as a catalyst for a major government-led programme of infrastructure projects across the country. Foreign corporates are attracted to these high growth opportunities available across Brazil’s economy. Brazil attracts one of the highest levels of FDI globally and with investment expected to reach a record US$70 billion in 2013, competition for high quality assets is increasing. Key findings from our research: Foreign corporates from low growth economies are participating in Brazil’s US$600 billion plus investment programme to upgrade infrastructure and increase energy production. The demand for experienced specialist providers is creating opportunities across the supply chain and driving inbound M&A. Brazil is forecast to be the fifth largest consumer market globally by 2020. Both foreign corporates and international financial investors are using acquisitions of leading domestic brands to enter the market and establish a platform for growth. Brazil has a complex operating environment and investors typically enter the market via a joint venture or through a majority stake acquisition which can include a path to full ownership. Brazil is a core strategic market for foreign corporates with international ambitions “The increase in global cross-border capital flows combined with Brazil’s macro-economic fundamentals and disciplined policies makes Brazil a very attractive destination for foreign companies to invest.” Leonardo Antunes, Managing Director, BroadSpan Major growth opportunities driving inbound M&A MergersAlliance2013
  • 2. Brazil M&A update 2 Foreign direct investment to reach record US$70 billion in 2013 Brazil is the third most attractive investment destination by value globally with only China and the US attracting a higher proportion of inbound foreign direct investment (FDI). GDP growth is forecast to exceed 3% in 2013 (see Figure 1). The domestic economic stimulus implemented during 2012 will support higher growth. Real interest rates are currently close to historical lows, retail sales are increasing, unemployment is low by Brazilian standards and industrial and business confidence is rising. Higher growth means Brazil remains attractive for inflows of FDI. FDI are expected to increase from an estimated US$64 billion in 2012 to US$70 billion in 2013 and US$75 billion in 2014 (see Figure 2). The US, UK, Spain, Germany and China account for the majority of investment. MergersAlliance2013 Inbound FDI favours domestic sectors and commodities 6.1% 5.2% -0.3% 7.5% 2.7% 0.9% 3.1% 2007 2008 2009 2010 2011 2012 2013*F Figure 1: Gross domestic product (% growth YoY) Source: Brazilian Statistics Bureau, *Credit Suisse International companies have focused on sectors linked to rising consumer spending including food products and beverages, retail and consumer products, insurance and commodities (see Figure 2). Around 75% of investments have been made in projects with a value less than US$500 million. Figure 2: Foreign direct investment (US$ billions) 2007 2008 2009 2010 2011 2012E* 2013F* 2014F* 34.6 45.1 25.9 48.5 66.7 64.0 70.0 75.0 80 70 60 50 40 30 20 10 0 US$billions Source: Central Bank of Brazil, *Credit SuisseSource: Central Bank of Brazil Oil & gas extraction: 4.4 Food products & beverages: 6.7 Metals: 6.5 Commerce (ex. vehicles): 5.9 Insurance: 4.4 Financial services: 4.3 Top 5 FDI by segment 2012 (US$ billions)
  • 3. Brazil M&A update 3 Fifth largest consumer market globally by 2020 By 2020 Brazil is forecast to be the fifth largest consumer market in the world with household consumption of US$1.8 trillion. Foreign companies are attracted to consumers’ discretionary spending power (see Figures 3 and 4). The middle class has grown to around 133 million people in 2014 with 85% of the population living in urban areas. Brazilian consumers are optimistic about the outlook for their household income, and fiscal initiatives have been targeted to support consumption. Foreign brands are taking advantage of the growth in spending on areas such as alcohol, technology and fashion. For example, UK drinks giant Diageo acquired the leading premium cachaça brand Ypióca for US$455 million in 2012. Cachaça is the largest spirits category in Brazil and the acquisition gives Diageo a platform for the sale of premium international spirits brands in Brazil. MergersAlliance2013 Brazil is benefiting from high consumer spending 11.1% 2004 2005 20072006 2008 2009 2010 2011 2012 3.1% 6.4% 13.6% 9.9% 6.8% 12.2% 6.6% 8.0% Average growth rate Figure 4: Broad retail sales % YoY Source: Brazilian Institute of Geography and Statistics 10.2 USA JapanChina Germany Brazil France UK Italy 5.4 3.5 2.2 1.8 1.6 1.5 1.4 Figure 3: Global consumer market in 2020 US$ trillion Source: Exame Magazine and McKinsey As incomes have risen, consumers are also spending more on buying services such as education and healthcare. This is leading to M&A. - H.I.G. Capital acquired Cel Lep Idiomas, a leading premium English Language Teaching network, in 2012 - Italian global medical device manufacturer Sorin Group recently acquired Alcard Industria Mecanica, a manufacturer of medical devices for cardiac surgery - Canada-based Valeant is a serial acquirer and has established a strong presence in dermatology and the sports food supplement market with the acquisitions of Instituto Terapêutico Delta, Bunker Industria Farmacêutica and Probiotica - US-based Agfa HealthCare acquired healthcare IT company WPD, enabling Agfa to increase its market share for imaging and IT systems for radiology in Brazil
  • 4. 4 Brazil M&A update Foreign companies will bid in 2013 infrastructure concession auctions Bottlenecks driving major infrastructure spend The 2014 FIFA World Cup and 2016 Summer Olympic Games are acting as a catalyst for public and private investment to upgrade Brazil’s infrastructure, which is running at overcapacity and slowing economic growth. The Government will spend US$33 billion on preparations to host the World Cup and Olympics including building stadiums, water sports venues, hotels, roads, subways and airports. This will be supplemented by investment from the corporate sector in the supply chain related to the events. Brazil is auctioning concessions for major airports, railways and toll roads. Auctions, which will typically be won on price, are open to international competition. Foreign corporates are attracted to companies with concessions. For example, in 2012 US-based Brookfield Infrastructure established a joint venture with Abertis Infraestructuras to acquire a majority stake in Arteris for US$1.7 billion. Arteris is one of the largest owners and operators of toll road concessions in Brazil Foreign corporates are using their technical expertise to supplement Brazil’s less mature infrastructure capabilities. Companies from the UK are particularly active: - Balfour Beatty entered the market via a partnership with leading construction company Camargo Corrêa and is working on rail links to the mining industry based in north Brazil MergersAlliance2013 20 70 80 90 50 60 30 40 10 100 0 Fiat Ford Renault Honda Nissan Others Market Share % 21.7% 9.0% 6.5% 4.9% 4.3% 3.6% Citroen 2.7% 6.7% GM 18.2% Hyundai VW 20.6% Toyota 2.0% Figure 5: Foreign brands dominate car sales (2012 sales units 10k) Source: KARI, Mirae Asset Research Demand for automobiles is increasing, but with light vehicle density just 137 per 1,000 people compared to more than 640 cars in the US, the potential for growth is significant. Brazil’s auto sales hit a record high in 2012, growing by over 6% from 2011 to reach over 3.6 million vehicles (excluding trucks and buses). Demand is being boosted by reduced industrial products tax and an increase in financed car purchases. As shown in Figure 5, a range of foreign manufacturers including Fiat and Volkswagen have a significant market share for their locally-produced vehicles and are investing heavily to develop local production capabilities.
  • 5. 5 Brazil M&A update MergersAlliance2013 US$ billion Electricity generation Housing Airports Highways Water and sanitation Railroads Telecommunications Energy including Petrobras 21 23 27 31 33 38 58 400 2016 Summer Olympic games 15 2014 World Cup 18 Ports 14 Figure 6: Over US$600 billion is being invested across infrastructure projects by the Brazilian government Source: Brazilian Statistics Bureau - JCB, which has a factory in Brazil, has won orders to provide over 1,000 backhoe loaders worth around US$60 million - Engineering consultant Arup, which has two offices in Brazil, is working on two venues for the Olympic Games - Engineering and development consultancy Mott MacDonald has been involved in designing and planning tolling systems, designing construction supervision for new highway communications systems and developing control centres for maintenance and rescue services - Passenger simulation software designed by Legion is being used across a range of transport projects across Brazil “Arup has worked in Brazil for years, but previously we used project offices set up to deliver specific schemes. The opening of the new permanent offices in Rio and São Paulo plants a clear marker that we are here to stay and that we believe there is a strong future for Arup in this country.” Ricardo Pittella, Arup’s Country Director for Brazil Source: Arup press release
  • 6. 6 Brazil M&A update MergersAlliance2013 BroadSpan is the Brazilian partner of Mergers Alliance. Leonardo Antunes, BroadSpan’s Managing Director has completed deals, capital raising and project finance worth over US$15 billion in South America. He discusses M&A trends and provides insights into how foreign companies are entering Brazil. BroadSpan is helping a range of investors access opportunities in Brazil We are currently working with both public and private foreign companies, as well as private equity who recognise that they need to supplement their expertise with local specialists who have significant strategic and transaction experience. Most inbound interest is currently coming from the US, UK, France and Spain. M&A activity is focused on three key areas Companies based in the low growth developed economies are being forced to look to faster growing countries like Brazil for opportunities. Developed economies have mature industrial sectors, sophisticated business services providers and leading consumer brands. Companies in these areas are taking advantage of the scale of investment being made across Brazil’s infrastructure and energy supply chain, and the spending power of the rapidly increasing middle class. This is being reflected in M&A activity (see page 8). While the mega deals grab the headlines, there is a lot of activity by large and mid-sized foreign players acquiring smaller niche players such UK-based Intertek, which recently acquired an 85% stake in Brazilian toy and consumer products testing laboratory E-Test for US$9.9 million. Using a local advisor is critical to developing and implementing the right market entry strategy The operating environment for businesses in Brazil is complex and poor advice will lead to costly delays and missed opportunities. It’s vital that companies work with a local advisor who is able to use their market insight and personal relationships with companies and the government to help formulate the right entry strategy, use their expertise to evaluate the best local opportunities and deliver a transaction successfully. Potential acquirers need to consider issues specific to Brazil Around 90% of businesses in Brazil are family-owned and many will not have considered an exit strategy. This presents challenges to potential overseas acquirers. It is common for these businesses to maintain two sets of books and for results to be unaudited. High taxes based on revenue rather than profit mean owner- managers are careful about what they declare to the tax authorities. But this often creates a valuation gap with an overseas buyer because of the difference between the declared profit and the actual profit. BroadSpan has significant experience of creating deal structures which recognise fair value and meet the governance standards demanded by overseas buyers. Different sectors have specific legislation and tax rules Foreign corporates need to be aware of the specific requirements associated with operating in Brazil which govern a range of issues including the level of foreign ownership permitted, local content and licensing requirements and taxation and employment practices. For example, Brazil has multiple taxation regimes with different levels of taxing authorities. Tax laws change frequently, so it’s not unusual for companies and their advisors to work with more than one tax specialist. The status of employees can also raise issues, especially in the business services sector and consulting in particular. For example, to reduce employment taxes many employees in the service sector are contractors but if an acquirer wants to make employees permanent post- deal, this may trigger historic payroll tax and social security liabilities (see Case study on page 7). To protect overseas acquirers from claims, Sale & Purchase Agreements tend to include a higher number of indemnification clauses than an overseas acquirer might be used to. A perspective on M&A trends and market entry strategies
  • 7. 7 Brazil M&A update MergersAlliance2013 Undertaking rigorous due diligence is especially important in Brazil We always try to identify and qualify potential issues for our clients in advance of commencing full diligence to avoid surprises and gain early visibility of those areas which may have a significant impact on the value and the transaction process. Should a client wish to proceed and given the issues discussed earlier, due diligence is critical and can uncover issues such as liabilities associated with existing litigation and potential claims, which affect the valuation of a target and potentially negotiations. Ensure the acquisition structure is tax efficient Acquirers need to engage early with tax and legal specialists to ensure a transaction is structured to repatriate dividends and earnings in the most tax efficient way possible. Brazil has signed double tax treaties with only a handful of countries and so holding companies and investment vehicles are often located in jurisdictions like the Netherlands. New pre-merger review requirement affects transaction planning New competition laws introduced in 2012 are potentially a significant hurdle for cross-border transactions. Under the previous notification process, transactions could be completed before CADE (Administrative Council for Economic Defense) had given its approval. Now reportable transactions (one party has turnover in Brazil of approximately US$400 million and the other US$40 million) need to receive CADE’s approval before a transaction can complete. The waiting period for a reportable transaction to be reviewed can be up to 330 days. As yet there is no fast track process, although to date “non-complex” transactions have been cleared in around 18 days. Although this creates uncertainty for the vendor and acquirer, the new process removes the possibility of post-merger remedial action. The new notification and approvals process needs to be factored into the timetable planning for a transaction, especially as the information required in a notification form for a complex transaction is considerable. Companies prefer to create joint ventures or acquire a majority position Most companies prefer to enter the market via a joint venture or through a majority stake acquisition. Deal structures range from 50% to 80% and can include a path to full ownership over a two to four year period. The scale of a foreign company’s first acquisition varies with some preferring to make smaller acquisitions in order to understand the market better before making a larger move. Our experience suggests that a staggered approach to full ownership helps to align the interests of a company’s founder or shareholders. Outlook for foreign investors over the next 12 months is positive The upcoming World Cup and Olympics, rising purchasing power of the middle class and range of government- supported growth measures means Brazil has the attention of global corporates and investors looking for strategic growth. This will drive increasing competition for high quality assets and stimulate inbound, outbound and domestic M&A. Case study: Accenture’s acquisition of RiskControl BroadSpan advised RiskControl, a privately held risk consulting company based in Rio de Janeiro, on its recent sale to US consulting and technology services company Accenture. Reason for acquisition The acquisition complemented and expanded Accenture’s risk service in the rapidly growing Brazilian market. It also gave Accenture access to the end-to-end software tool RiskControl, a software platform that helps companies manage, monitor and evaluate risks throughout their business. How the deal was transacted BroadSpan navigated through complex deal structures which addressed issues associated with contingent workers including contractors and permanent employees in order to maximize RiskControl's value.
  • 8. 8 Brazil M&A update 180 160 140 120 100 80 60 40 20 60,000 50,000 40,000 30,000 20,000 10,000 00 Numberofdeals Disclosedvalue(BRLmillion) Industrials Inform ation Technology Real Estate Financials Food & Drink H ealthcare Business Services C onsum er Products U tilities N atural resources Energy C onstruction Deals Disclosed Value (RHS) Figure 8: 2012 M&A activity by sector Source: Mergers Alliance, Captial IQ Strategic acquisitions dominate activity M&A has a strategic focus Total deal volumes have increased year-on-year following a dip in 2009 (see Figure 7). There were 643 deals in 2012. Activity has a strategic focus as foreign corporates look to enter Brazil or increase their market share. The industrials sector dominated inbound activity in 2012 as foreign corporates used acquisitions to take advantage of the massive investment in the energy and infrastructure sectors. M&A activity in consumer-focused areas including food and drink, healthcare and financial services was also high (see Figure 8). Foreign acquirers want to gain access to rising consumer spending via leading brands. M&A levels will remain strong in these sectors in 2013. Inbound investment M&A has been characterised by the acquisition of majority and minority stakes, as well as full acquisitions (see Figure 9). For example, US-based CVS Caremark recently acquired a majority stake in Drogaria Onofre, Brazil’s eighth largest retail drugstore chain. The deal is CVS Caremark’s first international acquisition and will act as a platform for the company to participate in the consolidation of a fragmented sector. 2008 2009 2010 2011 2012 503 700 600 500 400 300 200 100 0 329 455 591 643 Figure 7: M&A activity in Brazil (inbound, outbound and domestic) Source: Mergers Alliance, Captial IQ MergersAlliance2013
  • 9. 9 Brazil M&A update By 2020, Brazil is aiming to be one of the world’s top five oil producers. One third of global reserves discovered in the last five years have been found in Brazil, including the major find in the offshore deepwater “pre-salt” layers. Whilst legislation ensures that there will be a significant amount of local content, Brazil needs the expertise of international corporates to achieve its production targets. This means there are significant opportunities for foreign producers and suppliers. Global majors working alongside sector giant Petrobras State-backed Petrobras accounts for around 90% of Brazil’s total oil & gas production. It benefits from regulatory advantages over other independent Brazilian and foreign producers such as the requirement that it will be the operator on all pre-salt oil fields. Global oil & gas majors are committed to Brazil with around 40 companies including Chevron, BG, BP, Shell, Eni, Statoil, Total and ExxonMobil active in the upstream market. US$400 billion investment programme underway Petrobras is currently investing US$225 billion across the supply chain to meet its goal of doubling production by 2020. Major investment is also being made by leading independent producers OGX, Cosan and Queiroz Galvão in their exploration and production capabilities. The Round 11 Auctions to be held in May 2013 (which will include 289 exploration blocks) and Pre-Salt and Shale Gas bidding rounds later in the year will increase the penetration of foreign majors, increase investment and boost M&A. Leading tier 1 suppliers like GE, Aker and Cameron have established a local presence and are positioning themselves to win a share of the spend. Market entry strategies influenced by local regulations Petrobras approved suppliers’ register: Companies awarded contracts and orders directly from Petrobras are chosen from the company’s supplier Approval Register. Acquisitions and joint ventures are often the easiest way to enter the register. There are over 5,500 companies on Petrobras’ supplier register so significant M&A opportunities exist. For example, in 2011 UK-based Hydrasun acquired Remaq Ltda, a Brazil-based provider of flexible hose assemblies which had a proven record with Petrobras. Local content regulations: Goods and services used in the oil & gas industry must have a significant level of “local content”. Joint ventures enable international companies to ensure that they meet this requirement. For example, French oil service company Technip and Brazilian services provider Odebrecht agreed a joint venture which won a five-year contract estimated to be worth US$1 billion to supply two pipeline installation ships to Petrobras. Opportunity Lead supplier Support supplier Offshore oil drilling facilities need constant supplies during and after construction Petrobras estimates it will need 235 support vessels by 2020 Brazil’s Wilson Sons provides services within shipbuilding and shipping. It has a service contract with Petrobras to transport supplies Netherlands-based Damen Shipyards is building new tugs (in Brazil) and providing offshore supply vessels (OSV) to Wilson Sons. OSV engines include Caterpillar generator sets that power Rolls Royce azimuth thrusters Offshore drilling vessels Petrobas needs over 30 new drilling vessels Singapore’s Sembcorp Marine’s wholly-owned Brazilian shipyard Estaleiro Jurong Aracruz secured a US$793 million contract from Guarapari Drilling BV, Netherlands, a subsidiary of Sete Brasil Participacões Austria-based Palfinger Dreggen has a US$121 million contract to supply cranes to the Jurong Shipyard Selected opportunities in the subsea exploration & production supply chain Source: Mergers Alliance, company press releases Servicing Drilling vessels A major offshore oil and gas frontier MergersAlliance2013
  • 10. 10 Brazil M&A update Find out more Specialist advice on call… For information on Brazil Leonardo Antunes Managing Director, BroadSpan Capital Location: Rio de Janeiro Telephone: +55 21 2543 5409 Email: lantunes@brocap.com Leonardo is Managing Director of BroadSpan. His experience covers a range of sectors including power, oil & gas, mining, technology and healthcare. He has executed over 30 advisory transactions with a value in excess of US$10 billion and over US$5 billion in fund raising and project finance transactions. Prior to joining BroadSpan, Leonardo was responsible for M&A, capital markets and project finance transactions in Banco Modal and Vice Preside Corporate Finance and Structured Finance for Latin America at ABN AMRO. Languages spoken: English, Portuguese and Spanish Michael Gerrard Managing Director, BroadSpan Capital Location: Miami Telephone: +1 (305) 424 3400 Email: mgerrard@brocap.com Michael is a founder and Managing Director of BroadSpan Capital. He has overseen a variety of M&A and restructuring assignments and taken an active role in the development of BroadSpan Asset Management LLC, the firm's asset management subsidiary. Before founding BroadSpan, Michael headed the Latin American Capital Markets division at Barclays Capital where he was responsible for capital markets origination and execution for a range of products. While with Barclays, Michael executed over US$3.5 billion of international capital markets financings for Latin American issuers. Languages spoken: English, Portuguese and Spanish Private equity investment Private equity is an important driver of M&A in Brazil with deal volume over the last ten years worth around US$22 billion. Both domestic and international PE are focusing on companies benefiting from the growing spending power of the middle class. For example, in 2012 Brazil’s BTG Pactual acquired clothing retail store Leader Magazine for US$274 million in 2012, US-based Carlyle Group acquired furniture store Tok & Stok for US$348 million and UK-based 3i Group has recently led a consortium which has acquired Óticas Carol, Brazil’s second largest eyewear retailer, for US$54 million. Activity will continue to be strong in 2013. Large foreign institutional investors are also attracted to investment opportunities. For example, Ontario Teachers’ Pension Plan holds a 12.5% stake in Brazilian iron-ore company Manabi Holding and Canada’s Public Sector Pension Investment Board has acquired a stake in Isolux Infrastructure for US$402 million. Exit activity includes trade sales, secondary buyouts and initial public offering. Stratus Group, a Brazilian mid-market private equity investor, listed technology service provider Senior Solution in 2012 and car rental company Locamerica, backed by the private equity arm of Banco Votorantim, floated in April 2012. Private equity has a successful record in Brazil MergersAlliance2013
  • 11. 11 Brazil M&A update Date Target company Country Target Activities Acquirer Country Deal value (US$ mm) Mar-13 E-Test Laboratorio de Ensaio (85% Stake) Brazil Toy testing and related services Intertek Group plc United Kingdom 10.3 Feb-13 Drogaria Onofre Ltda Brazil Distributor of healthcare and personal care products CVS Caremark Corporation USA NA Jan-13 UAB Motors Participacoes S.A. Brazil Automotive retailer Group 1 Automotive, Inc. USA 207.5 Dec-12 Vivo Participacoes, S.A. (800 towers in Brazil) Brazil 800 free-standing, ground- based towers SBA Communications Corporation USA 176.8 Dec-12 Repom S.A. (62% Stake) Brazil Computer facilities management solutions for trucks Edenred SA France 69.8 Dec-12 Bunge Limited (Fertilizer Business in Brazil) Brazil Fertilizer business of Bunge Limited Yara International ASA Norway 750.0 Dec-12 XP Investimentos CCTVM SA (31% Stake) Brazil Brokerage and insurance house involved in corporate financial education General Atlantic LLC USA 230.8 Nov-12 Orbus Pharma S.A.S.; Flores Ervas; ApodanNordic PharmaPackaging a/s Brazil Supplies pharmaceutical extracts and tinctures Fagron BV Netherlands 26.0 Oct-12 Jari Celulose S.A. (Industrial packaging assets) (75% Stake) Brazil Containerboard mills and box plants of Jari Celulose S.A. International Paper Company USA 596.0 Oct-12 Serasa S.A. (29.6% Stake) Brazil Credit, economic and financial analysis and information company Experian Plc United Kingdon 1,500.0 Oct-12 Amil Participacoes SA (90% Stake) Brazil Health care services company UnitedHealth Group Inc USA 3,945.0 Sep-12 Kromav Engenharia Ltda. (50% Stake) Brazil Offshore oil and gas and marine engineering company Amec Plc United Kingdom 12.5 Sep-12 Carvajal Empaques S.A. (folding carton production plant in Brazil) Brazil Folding carton producing plant of Carvajal Empaques S.A. Mayr Melnhof Packaging International GmbH Austria 15 Sep-12 Tok & Stok Ltda. (60% Stake) Brazil Furniture retailer The Carlyle Group, LLC USA 346.5 Aug-12 Manabi Holding S.A. Brazil Iron ore exploration Ontario Teachers' Pension Plan; EIG Global Energy Partners USA; Canada 301.1 Aug-12 Tortuga Companhia Zootecnica Agraria Brazil Agribusiness and providing animal feed Royal DSM N.V. Netherlands 575.1 Aug-12 ETEP Consultoria, Gerenciamento e Servicos Ltda. Brazil Water engineering and consultancy Arcadis NV Netherlands NA Aug-12 Asseio Saneamento Ambiental Ltda. Brazil Pest control company Rentokil Initial Plc United Kingdom NA Jul-12 Rubaiyat (70% Stake) Brazil Restaurant chain Mercapital, S.L. Spain 56.9 Jul-12 Grupo Posadas (South American hotels portfolio) Brazil Hotel operator Accor SA France 275.0 Jul-12 Lamiflex do Brasil Equipamentos Industriais Ltda (85% Stake) Brazil Manufacturer and distributor of power transmission equipments Altra Industrial Motion Netherlands BV Netherlands 8.5 Jul-12 Usina Fortaleza Industria e Comercio de Massa Fina Ltda. Brazil Manufacturer of materials and quality adhesives Bostik, Inc. USA NA Jul-12 Rheoset Industria e Comercio de Aditivos Ltda. Brazil Manufactures admixture concrete products W. R. Grace & Co. USA NA Jul-12 Neogama | BBH Brazil Advertising agency Publicis Groupe SA France NA Jul-12 CP Eletronica SA Brazil Manufactures power systems for data centers, hospitals, and businesses Schneider Electric SA France NA Jul-12 Isolux Infrastructure S.A. (undisclosed stake) Brazil Operates as a construction and engineering company Public Sector Pension Investment Board Canada 754.5 Jun-12 Watercryl Quimica Ltda. Brazil Provides coatings solutions Elementis Plc United Kingdom 24.0 Jun-12 Folhamatic Tecnologia em Sistemas S.A. (75% Stake) Brazil Provides accounting, tax and payroll and regulatory content software The Sage Group Plc United Kingdom 196.8 May-12 Brasil Online Holdings (21% Stake) Brazil Provides online employment services SEEK Limited Australia 78.8 May-12 ACS Actividades de Construccion y Servicios, S.A. (Seven electric power Brazil Electric power transmission lines operated by ACS Actividades de Construccion y Servicios, S.A. State Grid Corporation of China China 942.2 May-12 Ypioca Agroindustrial (Ypioca brand and other production assets) Brazil Ypioca brand and other production assets of Ypioca Agroindustrial Diageo Plc United Kingdom 454.6 May-12 Neodent (49% Stake) Brazil Manufactures dental implants and related prosthetic components Straumann Holding AG Switzerland 275.3 Apr-12 Negocios nos Trilhos Participacoes Ltda Brazil Cargo and rail business tradeshow organizer United Business Media Limited United Kingdom NA Apr-12 Telcon Fios E Cabos Para Telecomunicacoes S/A (50% Stake) Brazil Manufacturer of copper wires, and cables for telecommunication, data and TV cabling markets Prysmian Cables & Systems Italy 27.4 Temporary power supplierMar-12 Companha Brasileira de Locacoes Brazil Aggreko Plc United Kingdom 256.4 64.4Mar-12 Transbank; Nordeste Seguranca Brazil Security company specialising in cash in transit, guarding and technology Prosegur Compania de Seguridad, S.A. Spain Figure 9: Selected M&A transactions Source: Mergers Alliance, Captial IQ MergersAlliance2013
  • 12. www.mergers-alliance.com MergersAlliance2013 BroadSpan and the Mergers Alliance partners are expertly placed to offer advice. In particular, we offer: Advice on structuring and completing deals in Brazil Identifying acquisition opportunities around the world Information on sector trends and valuations Access to corporate decision-makers and owners Join in the mergers and acquisitions discussion Australia Austria Belgium Brazil Bulgaria Canada China Colombia Czech Republic Denmark Finland France Germany India Italy Japan Luxembourg Mexico Netherlands Norway Poland Russia Singapore South Africa Spain Sweden Switzerland Turkey UK USA Mergers Alliance is a group of award-winning corporate finance specialists who provide high quality advice to organisations who require reach for their International M&A strategies. Global coverage Leonardo Antunes Managing Director, Rio de Janeiro Contact: +55 21 2543 5409 lantunes@brocap.com Felipe Monaco Director, São Paulo Contact: +55 11 4114 0247 fmonaco@brocap.com Ricardo Sirotsky Managing Director, Rio de Janeiro Contact: +55 21 2543 5409 rsirotsky@brocap.com Michael Gerrard Managing Director, Miami Contact: +1 (305) 424 3400 mgerrard@brocap.com Derek Gallo Director, São Paulo Contact: +55 11 4114 0247 dgallo@brocap.com Horacio Moreira Piedras Jr Director, Rio de Janeiro Contact: +55 21 2543 5409 hpiedras@brocap.com