Dec. 6 (Bloomberg) -- Estacio Participações SA, a Brazilian private university administrator, plans to make as many as four acquisitions next year to expand its network in the country’s north and northeast.
The company plans to use 200 million reais ($112 million) it raised from a local bond sale and $70 million in financing it received from the International Finance Corporation, the World Bank arm for the private sector, to complete two to four acquisitions in 2012, Chief Executive Officer Eduardo Alacay said at an interview in New York yesterday.
Estacio is benefiting from Brazil’s economic growth and better income distribution as more than 21 million people left poverty in the last ten years and unemployment remain near record lows.
“The public in the Northeast region is increasingly investing in education,” Alacay said. “Growth dynamics of the education sector are less volatile than those of the consumer industry.”
Estacio’s revenue will grow around 13 percent per year over the next three years, he said.
Estacio acquired four educational institutions this year in the states of Rio Grande do Norte, Roraima and Rio de Janeiro.
The Rio de Janeiro-based company has 240,000 students now, with 45,000 in Brazil’s Northeast, Alacay said.
“Brazil today has 6 million university students and it needs 10 million. Our role is to help in this growth, to guarantee good-quality education on a mass scale,” Alacay said.
Estacio shares fell 0.4 percent to 18.57 reais in the Sao Paulo trading yesterday. The shares lost 31 percent of its value since the beginning of the year, compared with a 15 percent drop in the Bovespa benchmark index.
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