Travelex goes shopping in Brazil with a £140m deal

Travelex, the foreign currency supplier, is buying Brazil's largest foreign exchange business in a deal believed to be worth up to £140 million.

Grupo Confidence runs 115 outlets in shopping malls and airports across Brazil and employs more than 700 people. Last year it had revenues of £36.4 million and made pre-tax profits of £6.3 million.

Travelex chief executive Peter Jackson said: "This deal represents a unique opportunity for both Travelex and Confidence. Combining our internationally recognised brand with the established local track record of Confidence will enable us to accelerate their ambitious growth plans."

A Travelex spokesman added: "The Brazilian retail foreign exchange market is worth approximately $17 billion and is expected to continue growing, supported by Brazil's strong economic growth and rising passenger numbers. Events such as the 2014 World Cup and the 2016 Olympic Games are also likely to provide a boost to the inbound passenger foreign exchange market."

Travelex is buying an initial 49% stake in Confidence and will buy the remaining 51% by 2014 after it has been cleared to do so by the Brazilian Central Bank.

Travelex is owned by private equity firm Apax.