CoreCo Private Equity announces investment in Synergy Group Service Solutions
San Jose, Costa Rica. – CoreCo Private Equity, the private equity fund targeting investments in Central America and the Dominican Republic, today announced the closing of its investment in Synergy Group Service Solutions (“SGSS”), Costa Rica market leader in automotive product sales and distribution to the trade. CoreCo’s investment will be used to continue the Company’s growth in the distribution of machinery, tools parts and consumables to the automotive service market.
“We are immensely proud to partner with SGSS. They have a history of anticipating trends in the automotive sector and have focused on branded and private label products where “quality at a price” are key sales driver,” said William Muecke, General Partner at CoreCo. “Their recognition in the market will be crucial as we continue to build the Company’s product platform servicing auto shops across the country.”
“CoreCo’s investment in our Company marks a strategic period for future growth. Demand for the services of mechanic workshops and auto parts is expected to continue growing, as the automotive industry maintains positive numbers and government regulations require car owners to invest in their vehicles, ” commented Thomas Ossenbach, CEO of SGSS.
The automotive industry is in constant expansion in Costa Rica. New car imports have shown a constant annual growth of 7.6% for the last 20 years. New car imports are at a high rate, with growth from 2011 to 2012 alone showing a 50% year-to-year increase. This growth in the industry will materialize in increased automotive services, higher demand for auto parts and more workshops.
About CoreCo: CoreCo is a private equity firm focused on making investments in Central America with offices in Miami, Guatemala, and Costa Rica. The partnership targets growth equity investments across diverse sectors with the view that portfolio companies have the potential to become regional leaders in their respective sectors.
About SGSS: SGSS is the Costa Rica market leader in automotive product sales and distribution to the trade. The Company’s primary client base is the independent auto mechanic shop and auto dealers, with SGSS supplying both the major, large-ticket product items (wheel balancers, lifts, gas emissions controls, etc.) as well as mechanic-preferred trade tools and other durable-use products. The Company distributes branded products, as well as private-label products, which it markets under its own registered mark. The Company is expanding into a broader offering of consumable products that are complementary to its current line. In addition, the Company has developed a very successful consumer credit arm, which offers market-priced, mid-term vendor loans to its client base. The Company enjoys a favorable market position as a developer and importer of quality-at-a-price tools and equipment with a leading market share for distribution and sales channels throughout Costa Rica. SGSS sells majority its products intro the marketplace through its subsidiary Proveduria Total.
CoreCo Private Equity
+506 2239 0391