Guatemala-based Grupo Transmerquim, (GTM), Latin America's second largest chemical distributor, has agreed to a takeover by private equity giant Advent International. The deal, for which terms were not revealed, is expected to close before the end of the year.

Since its founding 31 years ago, GTM has grown organically to become one of only two chemical distribution companies with a fully pan-American footprint. With 40 locations in 12 countries, it supplies chemical products and logistical services to more than 10,000 customers industries ranging from personal care to oil exploration.

Richard Kellogg, president of GTM's board of directors, said Advent's resources, industry and M&A experience will facilitate both GTM's acquisition plan and its continuing organic growth.

"There are tremendous growth opportunities for GTM in Latin America and beyond," he said.

"The chemical distribution market remains highly fragmented, especially in Latin America, and GTM's size and geographic presence provide a strong platform to consolidate he industry, leveraging Advent's M&A experience in the region," Patrice Etlin, managing partner in the investor's São Paulo, Brazil, office said.

Although chemicals have been a core sector for Advent over the past 25 years, especially in Europe, Etlin said the private equity group only recently started actively looking at the chemical industry in Latin America. GTM is its first investment in the region. In Brazil, he said, Advent is evaluating opportunities not only in chemical distribution but in all segments of the industry

No changes to the GTM management team or to the company's existing operations are expected as a result of the acquisition.