DHS Group Completed $250M Acquisition of Brazilian Construction Company Sandre: Fernando Aguirre DHS

DHS Group, a private equity and investment firm in the United States has acquired 100 % of the Brazilian construction company SANDRE Ingeniería y Construcciones S.A. for $150M, or about SEK 480 million. An earn-out over the next three years will determine the final price for SANDRE.

SANDRE is the second-largest construction company in Brazil with revenues of USD $370 million, approximately SEK 3 billion. Earnings after tax in 2019 were USD $10 million, or about SEK 80 million.

The seller is Altino Company S.A., one of the largest companies in the Brazilian economic world.

“The acquisition of SANDRE provides us with local resources to further capitalize on the opportunities in South America,” notes Fernando Aguirre, Vice Chairman of DHS. “DHS Group has an excellent track record in South America – developed over the past 25 years – in hydropower and irrigation projects. A strong base in South America through the acquisition of SANDRE will provide additional business opportunities. We will be able to offer construction services not only to satisfy demand by local customers, but also to assist existing international customers who are expanding in South America. SANDRE is an attractive acquisition that fits well with DHS Group’s long-term strategy to expand its operations in South America. ”

“The due diligence of SANDRE was very positive, it confirmed our expectations of SANDRE as a well managed company with growth potential,” says Peter Graham, CEO fo SANDRE where SANDRE’s operations will be included.

“A firm with the prestige and size of DHS Group opens a new completing opportunity stage for SANDRE’s family, encouraging its people to demonstrate they are capable of following-up the new intended pace of growth. Therefore, at SANDRE, we are very much enthusiastic and optimistic that we will be able to further develop our talent and full commitment that gave us our present leadership in the Brazilian market”, says Lorenzo Petroni, Chairman of SANDRE.

DHS Group’s acquisition of SANDRE is in line with its established practice of acquiring customer- focused regional companies in an expanding market and with good management. Founded more than 50 years ago, SANDRE has had local operations with favorable profitability for many years. It currently has about 14,600 employees, with operations throughout South America, including Argentina, Brazil, Chile, Peru and Venezuela.

DHS Group announced in June 2021 that it would acquire SANDRE together with a minority partner, Temepa S.A. However, DHS Group and Temepa were unable to reach a mutual agreement and accordingly, DHS Group will acquire 100 % of SANDRE.

The seller, Altino Company S.A., with revenues of USD $1.6 billion, conducts operations in the oil, petrochemical, energy, construction and telecom sectors. Altino Company’s sale of SANDRE is part of its efforts to focus its business on the energy sector.

Key figures SANDRE (2020):

Number of employees 14.603 (December 31,2020)