GTM creates large independent Distribution Platform

Latin American chemical distributor GTM Holdings, SA [“GTM”] (San José, Costa Rica) has announced that it will acquire quantiQ (São Paulo, Brazil) from petrochemical producer Braskem (São Paulo, Brazil).

According to GTM, quantiQ is Brazil’s largest chemical distributor, . It was originally founded in 1991 as Ipiranga Quimica and serves more than 5’000 customers in a broad range of industrial sectors, including Cosmetics, Nutrition and Pharmaceuticals. The combined operation of GTM and quantiQ will comprise 63 distribution locations thoughout 12 countries in Latin America, creating the largest “independent distribution platform” in the region, the statement said.

 
The transaction “is valued at BRL 550 mn (Editor’s note: 1 EUR = ca. BRL 3.4), of which BRL 450 mn will be paid at the conclusion of the sale and the remainder in up to 12 moths post-close”.  Equity financing to support the acquisition will be provided by Advent International, the controlling shareholder of GTM and a large and experienced global private equity investor. No further financial details of this transaction were disclosed, which is subject to customary closing conditions. This includes an approval from Conselho Administrativo de Defesa Econômica (CADE), the competition authority in Brazil.

Source: GTM press release

HGE – DCG / 16.01.2017