Doughty Hanson Agrees to Sell Avanza Group to Grupo ADO
Doughty Hanson & Co., a London-based private-equity firm, agreed to sell Spanish bus and bus-station operator Avanza Group SA for an undisclosed sum.
Grupo ADO SA, a Mexican bus operator, purchased Avanza, Doughty Hanson said in a statement today. The sale is the firm’s fifth in 12 months as it looks to return capital to investors before raising a new 2 billion-euro ($2.7 billion) fund.
Doughty Hanson bought Madrid-based Avanza in February 2007 and made six acquisitions for the business, including CTSA Portillo SA. The private-equity firm refinanced the company with a 490 million-euro bond issue in May.
Private-equity firms typically pool money from pension plans and endowments with a mandate to buy companies within five to six years, then sell them and return the money and a profit after 10 years. The firms usually charge a management fee of as much as 2 percent and keep 20 percent of the profits from investments.
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