GP Investments Ltd, the largest Latin American private equity firm, said on Monday it will earn about $260 million from the sale of its 46 percent stake in Sascar Participações SA, a Brazilian fleet monitoring system provider. In a securities filing, GP Investments said Sascar, which was sold to France's Michelin SCA, was valued at about $714 million. Michelin agreed to also take on Sascar's debt.
The sale of the stake in Sascar will generate a return for GP Investments equal to 2.6 times the amount originally invested, and an internal rate of return of 33 percent measured in U.S. dollars, according to the filing. Measures in Brazilian reais, gains were 3.5 times the amount invested and the IRR of about 45 percent, the filing added.
Five percent of Brazil's car fleet uses monitoring systems, which use a transmitter hidden in the car's engine that helps the police track and recover it often within a few hours. Sascar, which was founded 15 years ago, currently offers services and monitoring coverage to about 21,000 independent truck operators. (Editing by Nick Zieminski)