GP Investments Invests R$259 million in Estacio
05/22/2008
Author:
GP Investments
Brazil
| Categories:
Private Equity |
Article:TRANSACTION WILL PROVIDE GP INVESTMENTS WITH A 20% STAKE IN ESTÁCIO AND
THE JOINT-CONTROL OF THE LARGEST PRIVATE POST-SECONDARY EDUCATION
INSTITUTION IN BRAZIL
São Paulo, Brazil, May 11th, 2008 – GP Investments [BOVESPA: GPIV11], the leading Latin American private equity firm, has signed an agreement with the founders (“Founders”) of Estácio Participações S.A. (“Estácio”) [BOVESPA: ESTC11] to acquire a 20% stake in Estácio originally belonging to the Founders.The total value of the transaction is R$259 million, or R$5.50 per share (equivalent to R$16.50 per unit). GP Investments’ private equity fund GP Capital Partners IV, L.P., managed by GP Investments IV, Ltd., a wholly-owned subsidiary of GP Investments, will fund the entire investment.
GP Investments and the Founders, pursuant to terms of a shareholders agreement will share control of
Estácio, with (i) the right to elect the same number of board members; (ii) the right to participate in the selection and hiring of the main executives and their compensation; and (iii) the right to approve the annual budget and acquisitions that may be carried out by Estácio.
Estácio is the largest private post-secondary educational institution in Brazil in terms of number of
students enrolled. Headquartered in Rio de Janeiro, Estácio has approximately 198,000 undergraduate
students enrolled in its 90 programs and its network includes one university, two university centers and 15 colleges throughout 67 campuses in 13 Brazilian states. In 2007, Estácio reported net revenues of R$860 million and EBITDA of R$101 million.
Estácio was founded in 1970 and after a period of national expansion and consolidation as a leading
educational institution, Estácio carried out its IPO in July, 2007. Estácio is currently listed in the Nível 2 of Bovespa’s Corporate Governance Rules. As part of the transaction agreement, Estácio intends to
migrate to the highest level of Bovespa’s Corporate Governance, Novo Mercado.
The investment will provide GP Investments with access to the highly attractive Brazilian education
industry, which has witnessed double-digit growth rates in recent years, anchored on a sizable market
with low penetration rates and favorable macro economic conditions. Estácio is an ideal platform for GP Investments to invest in the sector and, together with the Founders, create value in Estácio supported by its market leadership, scale of operations and potential for growth.
ABOUT GP INVESTMENTS
GP Investments is the leading private equity firm in Latin America. Its mission is to generate higher than average long-term returns to its investors and shareholders. Since its inception in 1993, GP Investments and its predecessors have raised more than US$3.0 billion from international investors and have acquired 47 companies in 15 different sectors. In May 2006, GP Investments concluded its initial public offering (IPO), becoming the first listed private equity company in Latin America. For more information see GP Investments’ web-site (www.gp-investments.com) or contact the company’s media contacts.
Media Contact (USA):
Tom Steiner
Press Relations
Edelman
(1) 212 704 8272
tom.steiner@edelman.com
Media Contact (Brazil):
Ana Landi
Press Relations
Máquina da Notícia
(55) 11 3147 7900
ana.landi@maquina.inf.br