Tempo Assist teams up with Multiasistencia
Tempo Assist, a services and healthcare company part of the GP Investment’s Private Equity fund, signed yesterday an agreement to create a joint venture with the Spanish group Multiasistencia, leading company in the residential assistance in Spain, France and Portugal. On the Brazilian side, the transaction has been closed by Tempo USS, a business unit specialized in assistance for homes, people and vehicles.
A third company will be created under the name of Tempo Multiasistencia. Each shareholder will hold a 50% stake. There will be new funds but values won’t be available until the end of the third quarter of this year. Headquarters will be based in Sao Paulo.
Tempo Multiasistencia will provide home repair services and assistance. This is a not very well known business in Brazil, with only a few banks and insurance companies offering home insurance, such as Itaú and Porto Seguro.
“We aim to provide a service to insurance companies, reducing accident rates” says Tempo Assits’ CEO, Marcos Couto. According to the executive, there are more than 40 million houses in Brazil with no home insurance.
“For us, this is a frame even more diversified within the assistance business. This is something very innovative for the Brazilian market, where this kind of service is not provided”, says Couto.
The General Manager of Tempo Multiassistencia will be the Spanish executive, Israel Gil. The new company will have a Management Board with six members, three chosen by each shareholder. The President has not yet been named. Couto mentions that the negotiation has lasted a year and a half, with the advisory service of the lawyers firm Castro Barros Advogados.
“The company has a national scope, however expects to expand to other markets in LatAm”, confirms Couto. According to him, the first three years will be devoted to the consolidation of the company in Brazil. Afterwards, the new company will head for other Latin-American countries.
Tempo Assist consists of six different business units. From January to September its net turnover has amount R$665.5 million, with a 21% growth versus the same period in 2011. Net income, however, decreases 10.3% during that period, up to R$18.6 million.