AIG Global Investment Group Invests in Brazil's Companhia Providencia Industria e Comercio

Feb 01, 2007, 00:00 ET from AIG Global Investment Group

    SAO PAULO, Brazil, Feb. 1 /PRNewswire/ -- AIG Global Investment Group today announced that an investor consortium led by AIG Capital Partners, Inc., a member company, has acquired the private company Companhia Providencia Industria e Comercio ("Providencia") for a total purchase price of US$432.6 million (R$930.0 million) after receiving all necessary regulatory approvals. Part of the transaction, which consisted of the acquisition of 100% of Providencia's shares from existing shareholders, was funded from the AIG Global Emerging Markets Fund II, L.P. (GEM II). AIG Capital Partners led the execution of this leveraged buy-out acquisition as a member of a consortium composed of other investors, including Governanca e Gestao ("GG Investimentos"), Banco Espirito Santo ("BES") and the Constantino Family. Banco Santander provided financing for 50% of the purchase price, acting as sole lead manager of a local commercial paper issuance.     Based in Brazil, Providencia is Latin America's leading manufacturer of non-woven's, a fabric made of polypropylene used in disposable goods such as diapers and feminine care, and durable goods such as auto-parts and home furniture. As a secondary business line, the company is also a manufacturer of PVC connections, tubes and flexible packages.     "Providencia is a first-rate company with state-of-the-art technology and superior product quality. We recognized the opportunity to partner with a successful organization that is on the forefront of expanding internationally by increasing its exports to several markets in the US and Latin America," said Fernando Borges, CEO of AIG Capital Investments do Brazil. "AIG Capital Partners believes that with the expected industry growth and Providencia's dominant market position and share of market, the company will be able to achieve their strategic vision, bringing them to an even higher competitive level."     As a member company of AIG Global Investment Group, AIG Capital Partners is a leading private equity investor in emerging markets, with 100 investment professionals located in 19 offices worldwide.     AIG Global Investment Group     AIG Global Investment Group (AIGGIG) is a worldwide leader in asset management, with extensive capabilities in equity, fixed income, multi-manager hedge funds, private equity, and real estate. AIGGIG manages more than US $670 billion in assets, and employs over 1,800 professionals in 44 offices around the world as of December 31, 2006. Total assets under management include approximately US $563 billion of AIG affiliated assets. AIGGIG comprises a group of international companies which provide investment advice and market asset management products and services to clients around the world. The member companies of AIGGIG are subsidiaries of American International Group, Inc. (NYSE:   AIG).     GG Investimentos     Governanca & Gestao Investimentos is an independent private equity fund manager, managed by Antonio Kandir, a former Planning Minister in Brazil. GG Investimentos manages resources of the main Brazilian pension funds, Brazilian National Development Bank Holding Company (BNDESPAR/BNDES), and other qualified investors.     The Constantino Family     The Constantino family is a traditional Brazilian transportation group with investments in ground transportation companies and in one local airline ("Gol Linhas Aereas Inteligentes or Gol"). The family owns 72% of Gol, a leading Brazilian low cost carrier which has a 37% market share in the Brazilian domestic market. Gol is listed both in the NYSE and in the Bovespa, Brazil's stock exchange. The family also has investments in the infrastructure sector, specifically in highway concessions. Last year, investments of the Constantino family transported 231 million passengers by bus and 18 million passengers through its airline.     BES     The Banco Espirito Santo Group (GBES) is the third largest financial group in Portugal, with total assets of EUR 53.6 billion (as of 09/30/06) and market cap of EUR 7.3 billion (as of 01/30/07). ES Capital, the Group's private equity division, manages $US 175 million in a portfolio of 32 companies spread across Portugal, Spain, France and now Brazil.  

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