Advent Buys Mexico Funeral Services Firm (1)

Advent International has acquired 100% of Grupo Gayosso, the Mexican funeral services company, from private investors in a $317m leveraged buyout. The transaction was funded with equity provided by Advent and $195m in acquisition financing led by Scotiabank and Ontario Teachers’ Pension Plan. Besides a senior term loan and working capital facility, the financing includes a $40m subordinated loan with an 8-year bullet payment. Gayosso offers a complete range of funeral products and services through a nationwide network. “We see significant opportunities to grow by acquiring incumbent players in key cities not served by Gayosso and by opening new facilities in select locations,” says Alfredo Alfaro, a partner in Advent’s Mexico City office. Advent predicts consistent long-term growth in the Mexican funeral services market. In conjunction with the buyout, Advent has appointed a new CEO of Gayosso, Rafael Obregón, and named one of its operating partners, Kenneth Budde, to the company’s board. Obregón was previously CEO of Casa Herradura, the tequila producer. Gayosso is the latest acquisition by Advent’s $1.3bn Latin American Private Equity Fund IV.