L Catterton, the largest global consumer-focused private equity firm, today announced that its Latin America fund has entered into an agreement to make a significant investment in CantuStore, the leading omnichannel aftermarket tire retailer and distributor in Brazil. Terms of the transaction were not disclosed.
Founded in 2006 by Beto Cantu, who serves as the company’s Chief Executive Officer, CantuStore is a technology and logistics platform that enables complete tire solutions, providing an industry-leading consumer experience and supporting business partners across the country. The company strategically sources a broad product portfolio of premium and value tires from both domestic and international manufacturers and sells them directly to consumers through CantuStore’s own e-commerce (www.PneuStore.com.br) as well as Brazil’s leading marketplaces. CantuStore also partners with and distributes tires to fleet management companies and independent auto shops across Brazil. Known for being a disruptor in the industry, CantuStore was the first importer to distribute domestically produced tires in the country and one of the first players to launch private label brands in the category and has continued its track record of market transformation since inception.
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“At CantuStore, we are relentlessly focused on revolutionizing the Brazilian tire aftermarket in order to provide our customers with a superior experience,” said Mr. Cantu. “This transaction will give us the resources and knowledge necessary to accelerate customer acquisition, expand to new tire segments, and execute compelling M&A opportunities. We are excited to partner with L Catterton and leverage the firm’s deep consumer insights, digital capabilities, and experience in managing high-growth businesses.”
“With its distinctive brand positioning, impressive portfolio, long-standing supplier relationships, and pioneering omnichannel capabilities, CantuStore represents a unique opportunity to invest in the undisputed leader in the attractive and resilient tire aftermarket category in Brazil,” said Julio Babecki, a Managing Partner in the Latin America Fund of L Catterton. “We see numerous organic and inorganic value-creation levers for CantuStore and look forward to supporting the company’s efforts to unlock its full potential.”
“We believe there is a clear opportunity to advance CantuStore’s legacy of innovation and market leadership, establishing the company as the top-of-mind one-stop shop for both consumers and business partners across Brazil,” said Farah Khan, a Partner in the Latin America Fund of L Catterton. “In our time with Beto and the entire management team, it has become abundantly clear they are a high-performing team with a history of proven execution. We look forward to working with Beto and the rest of the management team in CantuStore’s exciting next chapter of growth.”
L Catterton has significant experience investing in automotive-related consumer categories. Current and past investments in the space include, RealTruck, West Marine, AirX Climate Solutions (formerly Airxcel), and Vroom. L Catterton has also made several investments in Brazil, including Espaçolaser, Petlove, St. Marche, FEMME, and OdontoCompany.
The transaction is expected to close in the fourth quarter of 2022, subject to customary closing conditions.
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