Mercapital Eyes Brazilian Denim Maker Tavex

[Textile Industry]

Spanish mid-market private equity firm Mercapital is currently completing due diligence on listed Brazilian denim maker Tavex.

The company is 49 per cent owned by Brazil’s Camargo Correa. Minority shareholders include Rilafe, which owns a 6.4 per cent stake, and Caixanova, which holds five per cent.

Tavex, which resulted from the 2006 merger between Spain’s Tavex and Santista Textil, generated revenues of €446m in 2010. In the first nine months of 2011 the company posted a turnover of €376m.

Mercapital, which has an established presence in Brazil and Miami, recently became the first Spanish private equity firm to open shop in Bogota, Colombia, in a bid to execute buy and build strategies with Spanish mid-market companies looking to grow outside of their domestic market.

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