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Advent International to acquire 50% of TCP, Brazil’s third-largest container port terminal

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Acquisition will enable TCP to expand its capacity, increase productivity and enhance logistics services to clients

PARANAGUÁ and SÃO PAULO, January 14, 2011 – Advent International, the global private equity firm, today announced that it has agreed to acquire 50% of the capital stock of TCP - Terminal de Contêineres de Paranaguá S/A (TCP), Brazil’s third-largest container port terminal. The value of the transaction and other financial terms were not disclosed.

All of TCP’s current shareholders – Pattac Empreendimentos e Participações S/A, TUC Participações Portuárias S/A, Soifer Participações Societárias Ltda., Grup Maritim TCB, S.L. and Galigrain S.A. – will retain ownership positions in the company.

Advent's investment, which is subject to regulatory approval, will enable TCP to pursue an aggressive expansion plan aimed at increasing its terminal capacity by approximately 70% through the construction of a third berth and purchase of new equipment. Grup Maritim TCB, a port terminal owner and operator, which currently supports TCP’s operations, will continue to provide advisory services to the company in this new phase of its development.

Founded in 1998, TCP operates the container terminal at the Port of Paranaguá, the second-largest port in Brazil, with current activity of approximately 675,000 TEUs (twenty-foot equivalent units) per year and a total area of more than 320,000 square meters. The company maintains a prominent position in international logistics, as it is a port of call for most container ships operating international and cabotage lines along the Brazilian coast. TCP’s services include loading and unloading of ships, bonded warehouses, monitoring of refrigerated containers (reefers) and container stuffing.

Brazil’s container market has grown more than 10% per year over the past 12 years and is expected to continue expanding at attractive rates in line with the projected increase in the country's imports and exports. In the first nine months of 2010, Brazil transported 4.1 million TEUs, representing a growth of 14.2% compared with the same period of 2009. In the third quarter of 2010, Brazil transported a record 1.5 million TEUs.

David Simon, Chief Executive Officer of TCP, said: “After analyzing several options, we concluded that an association with Advent International would enable us to accelerate our growth process and generate additional value in TCP, which will translate into better services for our clients.” Mr. Simon will continue to lead the company’s operations together with Juarez Moraes e Silva, Chief Commercial Officer, who will continue to oversee TCP’s commercial and institutional activities.

Mr. Moraes e Silva added: “We are excited to begin working with our new partner. Advent’s experience in helping companies expand into adjacent market segments is a perfect fit for what we have been looking for as we embark on our next phase of growth.” 

Advent’s investment will enable TCP to expand its capacity significantly and improve productivity through a series of initiatives, including the construction of the terminal’s third berth. Work on the berth, which will be 315 meters long, is expected to start this year. Additionally, the transaction will allow the company to purchase new equipment for the terminal, including three new Post-Panamax “portainers” (ship-to-shore container cranes that can be used with large ships) and a diverse range of equipment such as “transtainers” (container yard cranes) and trucks to increase the terminal’s retro-area capacity. One of the portainers is in final testing and should begin operation in the next few weeks, with the other two expected to start later this year. After these investments, terminal capacity should increase from the current 700,000 TEUs per year to more than 1.2 million TEUs annually.

TCP also plans to enter adjacent logistics segments in an effort to offer its clients a complete transportation solution, from merchandise removal to loading on ships.

Commenting on Advent’s experience in the infrastructure sector in Latin America and plans for TCP, Luiz Antonio Alves, a Managing Director at Advent International in Brazil, said: “Advent is one of the largest airport operators in the region, managing airports in Mexico and the Dominican Republic. We are well positioned to support TCP’s expansion and are confident the company will continue to see significant growth in the coming years.”

Mr. Alves added that quality and productivity improvements are key elements of the strategy for TCP: “Throughout its history, the company has built a good reputation with its clients and the shipping community. We are thrilled to be partnering with David, Juarez and their entire management team during this exciting period in the company’s history, as it looks to raise its productivity and service to international quality standards.”

Advent was advised on the transaction by Banco Bradesco BBI S.A., Barbosa, Mussnich & Aragão Advogados and Tozzini Freire Advogados. TCP was advised by Banco Santander, Souza Cescon, Avedissian, Barrieu and Flesch Advogados and EBM Advogados.

Advent’s Experience and Approach in Latin America
Advent International is one of the most experienced and successful private equity investors in Latin America. Since entering the region in 1996, the firm has invested in 40 companies spread across seven countries. Notable investments include Dufry, a global company with operations in Latin America; CETIP, CSU, Kroton, Lojas Quero-Quero, Microsiga and Paraná Banco in Brazil; DolEx Dollar Express, Gayosso, Hildebrando, Inmobiliaria Fumisa and Milano in Mexico; International Meal Company (Viena, Frango Assado and La Mansión), operating in Brazil, Mexico and the Caribbean; OCA in Argentina; Nuevo Banco Comercial in Uruguay; and Aerodom in the Dominican Republic. The infrastructure sector is a key area of focus for Advent in Latin America. Today the firm is one of the largest operators of airports in the region, managing a terminal in the Mexico City International Airport through its investment in Fumisa and six airports in the Dominican Republic through Aerodom.
 
In Latin America, as in other regions, Advent takes an active ownership approach to investments, supporting the management of its portfolio companies in areas such as corporate governance, strategy, operations and financing. Key to this approach is Advent’s resource-intensive platform. The firm’s Latin American team of 34 investment professionals is complemented by a network of 19 regional Operating Partners, senior executives who work with Advent and management to improve and grow the businesses in which Advent invests. This regional team can further draw on the expertise and networks of 125 other Advent deal personnel and 60 other Operating Partners globally to support the growth of its portfolio companies.

About Advent International
Founded in 1984, Advent International is one of the world’s leading global buyout firms, with offices in 17 countries on four continents. A driving force in international private equity for more than 25 years, Advent has built an unparalleled global platform of over 160 investment professionals across Western and Central Europe, North America, Latin America and Asia. The firm focuses on buyouts and strategic repositioning opportunities in five core sectors, working actively with management teams to drive revenue and earnings growth in portfolio companies. Since inception, Advent has raised $26 billion in private equity capital and completed over 260 transactions valued at more than $55 billion in 35 countries. For more information, visit www.adventinternational.com.

About TCP
TCP is Brazil’s third-largest container port terminal, operating under a concession regime at the Port of Paranaguá since 1998. The company has a current capacity of approximately 700,000 twenty-foot equivalent units (TEUs) per year and with the new investments planned for 2011, TCP should grow its capacity to some 1.2 million TEUs per year. In addition to Advent, the company’s shareholders include Pattac Empreendimentos e Participações S/A, TUC Participações Portuárias S/A, Soifer Participações Societárias Ltda., Grup Maritim TCB S.L. and Galigrain S.A. More information about TCP is available at www.tcp.com.br.

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