Advent Said to Consider Selling Stake in Brazilian Port TCP

  • Buyout firm working with Morgan Stanley on strategic options
  • Advent bought 50 percent stake in Brazil’s TCP in 2011

Advent International, the Boston-based private equity firm, is considering a sale of its stake in Brazilian container port Terminal de Conteineres de Paranagua SA, people familiar with the matter said.

The buyout firm is working with Morgan Stanley to examine strategic options for the company, according to the people, who asked not to be identified because they weren’t authorized to speak publicly. A sale could value TCP at as much as $1.2 billion, the people said.

Advent agreed to buy 50 percent of TCP, operator of Brazil’s second-busiest container port, in January 2011 in a transaction which valued the company at $1 billion, people with knowledge of the matter said at the time. The buyout firm pledged to increase capacity and purchase new equipment as part of the deal.

TCP was created in 1998 after winning the container terminal bid of Paranagua port conducted by the government of southern Brazil’s Parana state, according to the company’s website. The terminal is capable of handling about 1.5 million cargo containers a year and serves more than 4,400 clients, exporters and importers, its website shows.

No final decision has been made, and Advent could choose to keep its stake, one of the people said. Spokesmen for Advent, Morgan Stanley and TCP declined to comment.

Any sale would add to the $120.9 billion in private equity asset disposals globally this year, according to data compiled by Bloomberg. That’s 15 percent less than the $141.8 billion of sales during the same period last year, the data show.

Throughput at Parangua rose 3.3 percent last year to 782,346 twenty-foot equivalent units, according to the United Nations Economic Commission for Latin America and the Caribbean. That made it the second-busiest container port in the country, trailing only the Santos terminal, which handled 3.6 million boxes, the UN data show.

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