August 19, 2017

FINDING INVESTMENT OPPORTUNITIES IN EMERGING MARKETS

    Press : Press Releases

    Return to Press Releases


    Contact:

    Pholida Barclay, +1 212 632 3204, pholida.barclay@franklintempleton.com

    Darby Private Equity Fund Exits Investment in Alesat Combustíveis S.A.

    Belo Horizonte (Brazil) and Washington, DC (United States), June 13, 2016 – Darby Private Equity (“Darby”), the dedicated private equity arm of Franklin Templeton Investments, announced that the Darby Latin America Private Equity Fund (the “Fund” or “DLAPE”) has completed a transaction to sell its indirect ownership interest in Alesat Combustíveis S.A. (the “Company” or “ALE”) to Ipiranga Produtos de Petróleo S.A (“Ipiranga”) a subsidiary of Ultrapar Participações S.A. (“Ultrapar”). The enterprise value of the 100% sale of ALE to Ipiranga is R$2.1Bn (US$610 million).

    Based in Belo Horizonte, ALE is a distributor of fuel with 20 years of history. Darby first invested in Satélite Distribuidora de Petróleo S.A. (“SAT”) in 2004, and helped it grow and merge with ALE to create an important player in Brazil's fuel distribution industry. ALE distributes fuels through a network of approximately 2,000 gasoline stations and 270 convenience stores. In 2015, ALE sold 4.3 million cubic meters of diesel, gasoline, ethanol and CNG. For the same period ALE recorded revenue of R$11.4 billion (US$3.3 billion) and EBITDA R$275 million (US$80 million).

    Ipiranga has a network of more than 7,200 service stations throughout Brazil, aimed to provide a complete experience to their consumers, from fuels and lubricants to more innovative products. Through its strategy of differentiation, based on a wide range of products and services, Ipiranga has the largest loyalty program of Brazil, Km de Vantagens, with more than 21 million participants.

    ALE’s network complements the Ipiranga network geographically, especially in the North and Northeast of Brazil, where Ipiranga has less market share. Ipiranga intends to extend its strategy of differentiation to the ALE network. The combination of the two companies provides greater efficiency and competitiveness, with benefits for both consumers and resellers.

    “Ultrapar, operating through its subsidiary Ipiranga, is an excellent company that has an attractive market position. We are very glad with the completion of this transaction and we believe the combination of ALE and Ipiranga will strengthen both companies and benefit shareholders, employees, consumers and business partners. We are very pleased to have enjoyed a long and successful relationship with SAT and subsequently with ALE,” said Mr. Richard Frank, President and Chief Executive Officer of Darby Private Equity.

    Completion of the deal is subject to certain customary conditions precedent, including the approval by CADE (Administrative Council of Economic Defense) entity that will examine antitrust issues. The companies will keep their operations separate until conditions precedents are met and regulatory approvals obtained.

    About Darby Private Equity
    Darby Private Equity was founded in 1994 by The Honorable Nicholas F. Brady, who served as U.S. Secretary of the Treasury between 1988 and 1993. Richard Frank joined the firm as CEO in 1997 after his career at the International Finance Corporation (IFC)/World Bank. In 2003, Darby became a fully owned subsidiary of Franklin Resources, Inc. [NYSE:BEN], a global investment management organization operating as Franklin Templeton Investments. For more information please visit darbyoverseas.com.

    About Franklin Templeton Investments
    Franklin Templeton Investments provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 180 countries. Through specialized teams, the company has expertise across all asset classes – including equity, fixed income, alternative and custom solutions. The company’s more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in 35 countries, the California-based company has more than 65 years of investment experience and over $737 billion in assets under management as of May 31, 2016. For more information, please visit franklintempleton.com.


    Copyright © 2016. Darby Overseas Investments, Ltd. All rights reserved.