UK’s 3i sells Spanish Esmalglass to Bahrain-based Investcorp

British private equity investor 3i Group Plc (LON:III) said today it had divested Esmalglass-Itaca, a Spanish supplier of intermediate products for the ceramic industry, to Bahrain-based investment manager Investcorp for an unspecified amount.

3i made its first entry into the Spanish firm in 2002 when it bought a 49% stake in it for EUR230m (USD282.5m) as part of a management buyout of the whole company. Later in 2004 it acquired the remaining 40% of Esmalglass’s unit Itaca, specialising in colours manufacturing for the ceramic industry.

Commenting on the deal, Oscar Gomez, director at 3i, said that Esmalglass had expanded over the last decade through internationalisation and strengthening its top market position, and its acquisition by Investcorp would back its new business plan and enhance its value.

According to Antonio Blasco and Vicente Bagan, co-CEOs of Esmalglass, the sale of the company to a “highly complementary partner” such as Investcorp provides it with significant opportunities for further international growth.

Esmalglass, which was founded in 1978, produces ceramic glazes and colours as well as inkjet inks, which are used for the decoration of tile surfaces. It has plants in Spain, Brazil, Portugal, Italy, Russia, Indonesia and China, as well as large design and technical assistance teams in all the major ceramic markets globally. In 2011, Esmalglass generated revenues of some EUR270m.

Sponsor Bain acquires 30% stake in Genpact for $1bn

US private equity firm Bain Capital LLC has agreed to buy some USD1bn (EUR815.7m) worth of common shares in Bermuda-based business process management (BPM) company Genpact Ltd (NYSE:G) from certain existing sponsors, the target announced.

As part of the agreement, Bain’s South Asia Private Investments and other units will purchase around 68m shares in Genpact, equal to a 30% stake, from fellow buyout firms General Atlantic LLC and Oak Hill Capital Partners LP for USD14.76 apiece. The vendors will then own a combined stake of about 10% in the Bermuda-based company.

The share purchase will be implemented after Genpact distributes its special dividend of USD2.24 a share to all stockholders and its closing is expected to occur this year. The transaction is also pending anti-trust and competition approvals.

Following completion, Bain will appoint four directors to Genpact’s board which will substitute the current GA and Oak Hill representatives. The private equity investor has agreed not to sell any of the acquired shares for a period of two and a half years.

Morgan Stanley (NYSE:MS), Citigroup Inc (NYSE:C) and Cravath, Swaine & Moore LLP are advising Genpact, while JP Morgan (NYSE:JPM) and Ropes & Gray LLP are consulting Bain.

US food group General Mills completes acquisition of Brazil’s Yoki

US food company General Mills Inc (NYSE:GIS) said it had finalised its deal to acquire Brazilian sector player Yoki Alimentos SA.

The definitive purchase agreement was unveiled on 24 May 2012 but the financial parameters of the transaction remained undisclosed. Sean Walker, president of General Mills’ Latin American operations, described the closure of the acquisition as a new start for the company’s Brazilian business.

General Mills has expanded its portfolio with brands that have been favourites of Brazilian households for decades. As a result of this acquisition, General Mills will be able to accelerate its growth in the vibrant Brazilian market, Walker added.

Walker, who also runs General Mills Brazil, will be put in charge of Yoki. He will be assisted by a management team comprising key executives from both companies.

Yoki was established in 1960 by Yoshizo Kitano and currently sells over 600 products across the country under nine brands. The food products marketed under its Yoki and Kitano brands have secured leading market positions in categories such as snacks, convenient meals, basic foods and seasonings.

The company has multiple production facilities and a national retail distribution network. In 2011, it booked revenues of BRL1.1bn (USD539.4m/EUR438.5m) on an IFRS basis.