Carlyle buys 25% share of Brazil's Grupo Orguel

10 September 2012

Private equity firm Carlyle Group has acquired a 25% share of Brazilian rental company Grupo Orguel. The price was not disclosed.

Grupo Orguel was founded in 1963 by Fabio e Franscisco Guerra Lages and is still controlled by the Guerra Lages family. The family will maintain its majority stakeholding after the transaction.

The company rents construction equipment from 75 branches in 11 states in Brazil and operates under seven brands: Mecan, Mecanflex, Locguel, Locbras, Orguel, Orguel Plataformas and Bramex.

Carlyle said the investment would allow Orguel to grow through the addition of new equipment and by opening additional branches.

Sergio Fagundes Guerra Lages, Orguel's chief executive officer, said, "This investment represents an important moment for Grupo Orguel. As we prepare to celebrate our 50th anniversary next year, Brazil is going through an unparalleled moment of intense investments in infrastructure, home building and oil and gas.

"Such projects will continuously require a broad range of high quality and properly maintained equipment. Carlyle's industry expertise in equipment rental and its global reach will be instrumental in supporting Orguel in its mission to provide the best equipment and the highest level of service to our customers."

Fernando Pinto, a principal on Carlyle's South America Buyout team, said, "Grupo Orguel's exposure to the fast-growing infrastructure, home building and oil and gas markets in Brazil and its long-track record of growth and profitability attracted us to this investment opportunity."

For Carlyle the investment in Grupo Orguel is its latest foray into the equipment rental sector. It has previously invested in Hertz Corp and currently has a large holding in Australia's Coates Hire.

Grupo Orguel started life as an equipment distributor in the state of Minas Gerais before moving into equipment rental in the 1970s. It is now one of the largest rental companies in Brazil, employing more than 2300 people. It rents scaffolding, shoring, formwork, aerial platforms, generators and electric tools.

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