The Carlyle Group acquires 85% of Ri Happy, Brazil's largest toy retailer

Investment will drive chain expansion,
which has 114 stores in 18 states

São Paulo, Brazil – Global alternative asset manager The Carlyle Group today announced it has acquired an 85% ownership stake in Ri Happy, Brazil's largest retail toy chain with 114 stores in 18 Brazilian states and around 2,300 employees. Terms of the transaction were not disclosed.

"We are pleased to form this partnership with Ri Happy founders Ricardo Sayon and Roberto Saba and believe it will generate positive results for the company. This is a segment with significant growth potential in Brazil. Over the next three years, we intend to invest 200 million BRL in the company,” said Juan Carlos Felix, Managing Director for Carlyle in Brazil. Mr. Felix added, “Our investment in the Ri Happy chain demonstrates Carlyle’s commitment to Brazil, expanding our footprint throughout the country.”

Ri Happy was founded in 1988 by Mr. Sayon. Mr. Saba joined the business shortly afterwards and together they built the biggest selling toy chain in the country by partnering with national and international manufacturers, offering a wide range of products and focusing on high quality customer service and attractive prices.

"This is an important step for the company. We began with small steps, have reached a large size and now need a partner to continue our growth. With Carlyle’s support we expect a further jump in sales, customer service quality and improved relationships with partners, including suppliers, franchisees, shopping centers and our employees," said Ricardo Sayon.

Mr. Sayon will serve on the company's Board of Directors alongside senior Carlyle executives. Héctor Núñez will become CEO having previously led Walmart in Brazil from 2006 to 2010.

"I am excited to join this project. We will use the company's record of achievements as a foundation to take the company to the next level of market penetration and customer satisfaction, offering a unique approach to sales and customer service," said Mr. Núñez.

Equity for this investment comes from Carlyle South America Buyout Partners, a $1 billion fund advised by Carlyle’s team of professionals based in Sao Paulo.

In Brazil, Carlyle also holds a majority stake in CVC, the tourism operator, Qualicorp, the health plan broker and administrator, and Scalina, a lingerie manufacturer and retailer.

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About Ri Happy
Ri Happy was founded in 1988 in the city of São Paulo, by Ricardo Sayon, a pediatrician, and his wife. About a year later Roberto Saba joined the business. In order to make to business grow, Sayon decided to dedicate completely to Ri Happy and, together with Saba, implemented a culture of service providers and not simply sellers of toys. That included training the sales people to understand the habits and needs of children in different ages. They also implemented a direct communication with children. The Ri Happy chain is composed of 114 stores. It operates in 18 Brazilian states.

About the Carlyle Group
The Carlyle Group is a global alternative asset manager with $147 billion of assets under management in 89 active funds and 49 fund of fund vehicles as of December 31, 2011. 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 developed 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 more than 1,200 people in 33 offices across six continents.

Web: www.carlyle.com
Video: www.youtube.com/OneCarlyle

Contacts

Claudia Mancini – claudia.mancini@br.mslworldwide.com - +55 11 3169-9312
Mário Araujo – mario.araujo@br.mslworldwide.com - +55 11 3169-9334
Diego Lima – diego.lima@br.mslworldwide.com - +55 11 3169-9339

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