In an effort to enhance its business offering in Brazil, Actis reported it had invested $53 million in Brazilian cleaning products manufacturer Gtex. Gtex has brands such as Urca, UFE and Amazon. With the investment, Actis will now focus on commencing a comprehensive growth strategy plan for the Brazilian firm in the Brazilian market, targeted at introducing new product lines, geographical expansion and further acquisitions.

The Brazilian firm boasts a large portfolio of cleaning products, with a strong presence in segments including, laundry soap, fabric softeners, disinfectants, bar soaps, multi-use cleaners and steel wool; its washing powder, Amazon H20, is one of the first eco-friendly brands in Brazil. Currently, Gtex employs more than 1000 individuals and has a robust foothold as well in the country. The firm has five production plants situated in the states of São Paulo, Rio de Janeiro, Maranhão, Pernambuco and Mato Grosso.

The Brazilian cleaning products market is worth $6 billion, the fourth biggest such market globally and still growing.  Analysts have reiterated that this fast and sustained growth in the Brazilian cleaning markets industry can be attributed to the arrival of an ever greater number of consumers into the market – with estimates placing the number at about 20 million Brazilians having entered the middle class over the last five years.

Better distribution income and greater social mobility means the consumption of cleaning products is expected to experience strong growth over the next few years. Under the terms of the deal, Gtex’s co-founders, Neiva and Jose Santos will retain a stake and continue their involvement in Gtex’s operations. Commenting on the investment, Jose Santos said the partnership with Actis will allow Gtex to launch new product lines within the existing portfolio of brands; becoming one of the leading companies in the market.

However, commenting on the acquisition as well, Chu Kong, Co-Head of Actis in Latin America, noted that Actis’s experience in the consumer and retail sector, and its long term investment approach, will safeguard the success of Gtex, supporting its sustained growth. The expansion plan will be aggressive and will include innovative products lines, geographical expansion and acquisitions that will complement the Gtex portfolio, he added.

Actis is a leading private-equity investor in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has $4.7 billion funds under management. Actis, however, did not unveil the exact amount that it acquired.