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GP Investments Announces the Closing of the Sale of Sascar

1 September 2014

(Press Release) GP Investments, Ltd. has closed of the sale of equity investment in Sascar Participações S.A. held indirectly by GP Capital Partners V, LP and GPCP5 I Fundo de Investimento em Participações, to Groupe Michelin, for an enterprise value of R$1.6b. The deal comprises 100% of Sascar’s shares, with other shareholders and co-investors being parties to the purchase and sale agreement.

Founded 15 years ago, the Company serves around 20,000 companies and 21,000 self-employed truckers, covering a total of 230,000 vehicles. In March 2011, GPCPV acquired control of Sascar and led the execution of a strategy aimed at the Company’s development through organic and inorganic growth, technological innovation and the implementation of a results-oriented and meritocratic organizational culture. Under GP Investment’s leadership, Sascar became the largest player in Brazil’s fleet management and cargo tracking industry.

The transaction of Sascar will translate into total proceeds for GP Investments, as a limited partner in GPCPV, of US$92 million at current exchange rates or US$79 million if the amount that is expected to be held in escrow is not included. The proceeds calculation is net of the company’s estimate of net debt, transaction expenses and taxes. These values are still subject to post closing balance sheet adjustments set forth in the definitive agreements.

The sale of Sascar underscores GP Investments’ ability to conduct successful exit strategies for its portfolio companies independent of market conditions.