April 6, 2010 – Aureos Capital’s Emerge Central America Growth Fund (EMERGE) has acquired a 48% stake in Adalta, a Costa Rica based company that specializes in the production of house and car cleaning products and insecticides.
Adalta was created through a management buyout (MBO) of a division of Corporación CEK, the Costa Rican manufacturer and retailer.
The EMERGE fund is managed by Aureos Capital, a leading private equity fund management company specialising in investing in small to medium-sized businesses in emerging markets. This is the seventh investment for the EMERGE fund.
Adalta sells Cruz Verde (insecticide), F40 (car cleaning products), and Limpex (house cleaning products) brands, all known for offering good quality at affordable prices. Adalta’s strategy will focus on developing new products, investing in promotions, improving distribution channels and broadening marketing throughout the Central American region.
David Barboza, Adalta’s General Manager, comments: “We will now take the commercialisation of our products to the next level. We will focus on expanding our presence throughout Central America. Through our partnership with EMERGE, we will also strengthen our health and social standards.”
Says José Ulate, Aureos’ Fund Partner in Costa Rica: “The Central American region economy is developing from agriculture to the services sector. Small and medium sized enterprises that do not have hard assets for collateral can find it difficult to access financing from banks that are rooted in the past, creating opportunities for private equity.”
“Adalta is an excellent investment opportunity for private equity that might struggle to raise financing from local banks at the kind of competitive rate that they deserve. EMERGE’s regional presence will support Adalta’s growth in Central America while our partnership and close relationship with their management will ensure this MBO’s success.”
AUREOS CAPITAL LTD
Aureos Capital Ltd is a private equity fund management company which specialises in providing expansion and buy-out capital to unlisted mid-cap businesses across Asia, Africa and Latin America.
Since its establishment in 2001, Aureos has increased its funds under management to over US$ 1.2 billion and extended its geographical footprint to over 50 emerging markets covering Asia, Africa and Latin America, by establishing 16 regional private equity funds.
Investors in Aureos funds include institutional investors, bilateral and multilateral development finance institutions, pension funds, sovereign wealth funds, fund of funds, family offices and foundations and high net worth individuals.