Nasdaq-listed buyout giant Carlyle has bought a 60 per cent stake in Tok&Stok, Brazil’s largest specialty furniture retailer by sales, from the founding Dubrule family.
Ghislaine Dubrule will remain as CEO of Tok&Stok and the founders will retain a 40 per cent stake.
The deal will be financed through a $1bn pool managed by Carlyle’s South America Buyout Fund and Fundo Brasil de Internacionalização de Empresas FIP, a local fund advised by Carlyle and Banco do Brasil.
Financial terms of the deal were not disclosed.
The Barueri, São Paulo-based business was founded in 1978 and sells furniture and home décor products. Last year it generated about BRL$1bn ($494m) in sales through 35 stores in 12 states across the country and employed around 3,300 people.
“Tok&Stok is an outstanding business with a superb market position, exceptional brand recognition and a unique shopping experience for consumers and we are excited about its growth prospects,” said Daniel Sterenberg, a principal with Carlyle’s South America Buyout team.
Dubrule said the company plans to accelerate sales growth, strengthen customer service and improve relationships with its partners, including suppliers and employees.
Carlyle set up shop in Brazil in 2008 and has since invested in a number of companies in the country, including tourism operator CVC, health plan broker Qualicorp, lingerie maker Scalina, toy retailer Ri-Happy and equipment rental company Grupo Orguel.
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