07/10/2024 – 17:37
The acquisition of Carlyle’s operation in Brazil by SPX, in 2021, has proven to be a (much) more complex deal than Rogério Xavier probably imagined. The private equity manager has faced problems in several of its investments, and shareholders of its funds have questioned some management decisions.
The most emblematic problem involves Tok&Stok, where SPX is at war with the founding family to decide what to do with the furniture and decoration retailer. While SPX wants to merge Tok&Stok with Mobly – selling its stake in exchange for shares in the listed company and thus gaining an exit door – the Dubrule family defends a capital injection of R$220 million and an extension of debts – which would give breathing room for a turnaround.
Tok&Stok is not the only problematic asset in the SPX/Carlyle portfolio. The manager also has investments in Ri Happy, which had to restructure a debt of R$300 million last year; in Madero, which also recently underwent a major restructuring of its debts; and at Scopel, a lottery company that Carlyle bought in 2007 and underwent a long turnaround.
Read the full report at Brazil Journal.
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