CVC Funds’ first investment in Latin America to help leading manufacturer and distributor of specialty lubricants with international expansion
CVC Capital Partners Fund VII today signed an agreement to acquire a 30% stake in Cosan Lubes Investments Limited (“Moove”), a leading Latin American manufacturer and distributor of specialty lubricants, from Cosan, one of the largest and most successful Brazilian conglomerates with assets in the energy and logistics sectors, all leaders in their respective industries. Cosan will remain the majority shareholder with a 70% stake following the closing of the transaction.
Moove is the sole manufacturer of Mobil-branded specialty lubricants in Brazil and has the exclusive rights to commercialize products in Brazil, Argentina, Uruguay, Paraguay and Bolivia. Within Latin America, Moove sells via a network of exclusive distributors and directly to large industrial groups and OEMs. Since 2012, Moove initiated an expansion plan into Europe and now distributes mainly Mobil-branded specialty lubricants focused on industrial clients in the UK, France, Spain and Portugal.
Jean-Marc Etlin, Partner overseeing CVC’s private equity activities across Latin America based in São Paulo commented: “The partnership with Cosan presents a great opportunity for CVC Funds to invest for the first time in Latin America. We are looking forward to working closely with the excellent management teams of Cosan and Moove, leveraging our expertise and our global network to expand its footprint internationally.”
The transaction is subject to the customary approval process by the relevant regulatory authorities. Closing is expected in the first quarter of 2019.