PRESS RELEASE

The Carlyle Group to Acquire 25% of Grupo Orguel, One of the Largest Equipment Rental Companies in Brazil

Mon, 03 September 2012
2012-052

The Carlyle Group to Acquire 25% of Grupo Orguel, One of the Largest Equipment Rental Companies in Brazil

Investment will support growth plan via acquisition of
new equipment and opening of new stores

Sao Paulo and Washington, DC – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced it has acquired a 25% ownership stake in Grupo Orguel, one of Brazil’s largest equipment rental companies. The company is currently controlled by the Guerra Lages family, which will maintain its majority ownership. Grupo Orguel rents construction equipment via 75 branch locations in 11 states in Brazil.

Equity capital for the transaction will come from the partnership comprising Carlyle’s US$776 million South America Buyout Fund and Fundo Brasil de Internacionalização de Empresas FIP (FBIE), a local R$360 million fund advised by Carlyle and Banco do Brasil. Financial terms were not disclosed.

Fernando Pinto, a Principal on Carlyle’s South America Buyout team, said, “Grupo Orguel’s exposure to the fast-growing infrastructure, home building and oil & gas markets in Brazil and its long-track record of growth and profitability attracted us to this investment opportunity.” Fernando Borges, Managing Director and Head of Carlyle’s South American Buyout team added, “We have found in the Guerra Lages family the ideal partner for a growth capital investment in a sector which will benefit strongly from Brazil’s economic development.”

Founders Fábio Guerra Lages, Chairman of Orguel’s Board of Directors, and Francisco de Assis Guerra Lages, President of the Guerra Lages Shareholders’ Council stated that “Carlyle’s investment will further strengthen Grupo Orguel in its 49 years history of continuous growth”.

Sergio Fagundes Guerra Lages, Orguel’s CEO, said, “This investment represents an important moment for Grupo Orguel. As we prepare to celebrate our 50th anniversary next year, Brazil is going through an unparalleled moment of intense investments in infrastructure, home building and oil & gas. Such projects will continuously require a broad range of high quality and properly maintained equipment. Carlyle’s industry expertise in equipment rental and its global reach will be instrumental in supporting Orguel in its mission to provide the best equipment and the highest level of service to our customers.

Carlyle established its South America Buyout team in 2008. In Brazil, Carlyle investment funds have also invested in CVC, a tourism operator; Qualicorp, a health plan broker and administrator; Scalina, a lingerie manufacturer and retailer; and toy retailer Ri-Happy.  Funds  advised by The Carlyle Group have previously invested in the equipment leasing businesses through its investments in Hertz, the car and equipment rental company, and Coates Hire, Australia’s largest equipment hire company.

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About Grupo Orguel
Grupo Orguel was founded in 1963 by Fabio e Franscisco Guerra Lages as a construction equipment distributor in the state of Minas Gerais. In the 70’s Orguel was the pioneer in construction machinery rental in Brazil and it has expanded to become one of the largest construction equipment manufacturer and equipment rental companies in Brazil, employing over 2,300 people. Grupo Orguel provides a full range of equipment, including scaffolding, shoring, concrete formworks, elevator lifts, aerial platforms, generators and electric tools, tapping several industries such as homebuilding, infrastructure, oil & gas and industrial construction. Grupo Orguel operates through 75 branches in 11 states and it is divided in seven brands: Mecan, Mecanflex, Locguel, Locbras, Orguel, Orguel Plataformas and Bramex. www.grupoorguel.com.br

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $156 billion of assets under management across 99 funds and 63 fund of fund vehicles as of June 30, 2012. Carlyle's purpose is to invest wisely and create value. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs 1,300 people in 32 offices across six continents.

The Carlyle Group – Website
The Carlyle Group – YouTube Channel

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Contacts

Grupo Orguel 
Comunicação
Liliane (31) 2126-8056
liliane.vieira@linkcomunicacao.com.br

The Carlyle Group
Elizabeth Gill
W +1-202-729-5385
Elizabeth.gill@carlyle.com

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