Carlyle secures third Brazil deal in 2012

The Carlyle Group has been active with its South American Buyout Fund recently, acquiring Brazil’s Tok&Stok after purchasing stakes in Grupo Orguel and Ri-Happy earlier this year.

The Carlyle Group took another step in building its Latin American portfolio Wednesday with the acquisition of a majority stake in Tok&Stok, a Brazilian specialty furniture retailer. 

Equity for the deal was provided by Carlyle’s $1 billion South American Buyout Fund and the Fundo Brasil de Internacionalização de Empresas, a local vehicle advised by the firm and Banco do Brasil. 

Terms of the transaction were not disclosed. Carlyle could not be reached for comment. 

Carlyle will take a 60 percent stake in the company, the remaining 40 percent will be held by founder Régis Dubrule – who will stay on as Tok&Stok’s chief executive officer. 

Tok&Stok generated approximately $1 billion in sales last year. The company was founded in 1978 and specialises in furniture and home décor products. 

The acquisition of Tok&Stok is Carlyle’s third in Brazil this year, having purchased majority stakes in toy retailer Ri-Happy in February and Grupo Orguel earlier this month. Those deals also included equity from South American Buyout Fund. It is unclear how much investment capital remains in that fund. 

The fund’s portfolio also includes health plan broker Qualicorp and Scalina, a lingerie manufacturer and retailer. Carlyle acquired both companies in 2010. 

Carlyle launched its Latin American buyout business in 2007. In addition to Brazil, the firm also explores opportunities in Argentina, Chile, Colombia and Peru. The team is led by managing director Fernando Borges from Carlyle’s São Paulo office.