WSJ reported:
U.S.-based private-equity firm Carlyle Group L.P. acquired the control of Brazilian company Scalina for 280 million Brazilian reals ($160 million), local newspaper Folha de S. Paulo reported in its Sunday edition.A panty hose maker sounds a bit staid. Not so in Trifil's case:
The newspaper, which quoted an unnamed person close to the operation, said Carlyle acquired a 51% stake in the Brazilian company. Scalina, which produces the local famous panty hose called Trifil, posted a revenue of BRL400 million last year.
It's Carlyle's fourth deal in Brazil. The Carlyle Group puts its bazillions to work buying Brazilians. Brazil's growing economy, slated to host the World Cup and Summer Olympics, is enticing for this politically-connected private equity underwriter (PEU).
Scalina also sells Scala lingerie in the Middle East, Carlyle's other favorite part of the world.
BrazzilMag reported:
The country that buys the greatest variation of products is Lebanon. Kuwait purchases feminine T-shirts and the Emirates lingerie.Carlyle purchased control of a company with significant growth potential. What might cause an underwear run in the Middle East? How long before Carlyle dresses Scalina up for resale?
The export manager believes the products with greatest sales potential in the region are underwear. "The Arabs like Brazilian lingerie a lot," he states.
The colours with greatest demand are the basic ones, like black, white and chocolate. Among all products, lingerie is what Scalina sells the most in the Middle East.
Update 7-13-16: Reuters reported Carlyle has been trying to monetize Scalina for three years to no avail. Brazilian banks took it in the short hairs having to write down Scalina's loans in a debt restructuring.