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Guilherme Afonso was clear when he launched Connectus Capital: his idealized target was a B2B service with high-quality revenues, in a growing market with favorable competitive dynamics. He recently achieved his objective by closing the second deal in Brazil in 2024 with the acquisition of 100% of DNG Transportes SA (the first one was the acquisition of Kofre Tecnologia & nTopus by D1 Capital earlier in January). His syndicate was formed by 13 investors, including 4 local and 9 international participants such as Inversiones Cabiedes, León Bartolomé, Rafael & Felipe Ruiz, Scipio Holding, or Vonzeo Capital. Only 7 participated in the acquisition, and 5 new investors completed the equity gap.
Guilherme managed an incredible negotiation for this company, which has an EBITDA of €1.6M. The EV was negotiated at around 4.1 times EBITDA, but as the business grew 15% between the LOI and the closing, the effective purchase price was around 3.5 times EBITDA, including the full earn-out. The transaction was financed by approximately 49% equity, 29% sellers’ note, 14% bank debt provided by Banco Itaú, and 9% earn-out.
DNG Transportes SA specializes in transporting medicines, cosmetics, and related products from local distributors to pharmacies and hospitals in Brazil. The company employs 95 people and partners with 170 drivers. It operates on an asset-light model, working 100% with partner drivers and not maintaining its own fleet.
Guilherme explained that he chose this company because of its strong business fundamentals and high adherence to the initial thesis. It has contractual-based revenue, very high client stickiness, controlled client concentration, negligible asset investments, high cash generation, and a strong position in a growing and resilient market.
Legal (Buyer): Lobo de Rizzo / DD: HLB / Legal (Seller): FT Aquisições
