Carlyle makes first Brazil deal with $250m buy-out of holiday package firm

No financial terms have been officially disclosed, but a price tag of $250m has been mooted in media reports.

Carlyle has bought the company from founder and chairman Guilherme Paulus. Paulus will remain chairman of CVC and will retain a significant minority stake in the Santo André-headquartered company, while Carlyle now holds a 63.6 per cent stake.

Founded in 1972, CVC packages charter and commercial flights, cruises, hotels and receptive services into holiday packages, which it sells to around two million passengers each year. Tour packages to both domestic and international destinations are sold through more than 400 retail stores.

With its eye on other South American markets for the future, CVC will continue focusing on the Brazilian market, the 10th largest economy in the world with expected GDP growth of five per cent in 2010. Carlyle expects Brazil’s tourism sector to benefit from increased travel demand and heavy infrastructure investments as the country prepares to host the 2014 FIFA World Cup and the 2016 Summer Olympics.

Fernando Borges, Carlyle managing director and head of Carlyle’s South America buy-out team, said, “We are pleased to make our first buy-out investment in Brazil. CVC is a top company led by a talented CEO, Valter Patriani, and his management team, who have an outstanding track record and a clear strategy for long-term growth.”

The capital for this deal came from the $13.7bn Carlyle Partners V, Carlyle’s South America Buyout Fund and co-investors including RLJ Equity Partners.

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