Billionaire Clan From Brazil Heads to New York in Hunt for Deals
Billionaire Clan From Brazil Heads to New York in Hunt for Deals
(Bloomberg) -- Votorantim SA is opening an office in New York as the conglomerate owned by one of Brazil’s richest families hunts for deals to diversify its cement-to-orange juice portfolio.
The firm set aside $600 million for an initial batch of acquisitions and is starting with a five-person team scouring for opportunities in different sectors, according to Chief Financial Officer Sergio Malacrida. One area of interest is infrastructure as the U.S. embarks on $550 billion in fresh spending on roads, bridges, public transit and other projects.
The 103-year-old group owned by the billionaire Ermirio de Moraes clan is on track for its best year since 2008 on the back of higher metal prices and cement demand. But with 43% of sales coming from Brazil last quarter and global uncertainties on the rise, Votorantim is looking to de-risk.
“We’re setting a foot in the U.S. to improve our knowledge of the American market,” Malacrida said in an interview. “We’re currently more interested in investing in developed nations as we look to reduce volatility of our portfolio.”
The New York office will focus on finding businesses outside the sectors in which the group already operates, Malacrida said, adding that each of its units is already undertaking internationalization efforts.
Votorantim companies have spent a total of 3.3 billion reais ($605 million) on acquisitions this year. The cement unit, for example, has been accruing Spanish assets and is on the prowl in North America.
While expanding into new businesses, Votorantim won’t leave behind its industrial roots. The group owns one of the world’s largest cement makers, a top aluminum producer and the world’s fourth-largest zinc miner. It also has interests in finance, renewable energy and orange juice. Earlier this year, it launched a company to invest in real estate, buying a majority stake in what will be Sao Paulo’s tallest building.
Third-quarter profit rose 13 fold from a year ago to 1 billion reais, although it fell sequentially as costs rose. With inflation surging around the world and Brazil heading into a volatile election year, Malacrida is cautious about 2022.
“Now is the time for a lot of doubt and few certainties,” he said. “What we can do is look at long-term investments and manage what’s within our control. But we plan to keep investing.”
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