Mapa Capital takes control of Casas Bahia and plans a new direction for the company.

247 - Mapa Capital, a fund that separated from the former Mauá, gained prominence in the market by acquiring control of 85% of Casas Bahia, one of the largest retail chains in Brazil. The operation, which involved the conversion of R$ 1,6 billion in company debt, generated considerable curiosity about the intentions of the management company, which until then was little known. 

The information was given exclusively to Brazil Journal by André Helmeister and Fernando Beda, founding partners of Mapa, who explained the motivation behind the deal: "Our interest is in the company, not the debt," they stated. For them, the focus is on growth opportunities and the potential to transform the company's value.

Mapa Capital, which specializes in strategic investments in medium-sized companies, was created in 2013 by three partners who met in 1988 at the Banco Francês e Brasileiro (BFB). The company began its journey as a boutique financial advisory firm and soon evolved into direct investment, using its own resources and in partnership with institutional investors. The investment in Casas Bahia is not Mapa's first major investment; notable cases include the debt conversion of Plascar, an automotive parts manufacturer, and the acquisition of the biotechnology company Bioactive.

Regarding Casas Bahia, Helmeister and Beda explained that the strategy was based on observing the retailer's balance sheet and the need to restore the company's financial health. "We looked at the debenture and thought about what would happen to the company if that debt were converted," they said. The management, which underwent a restructuring in 2023 with the arrival of CEO Renato Franklin, now aims to increase profitability and optimize operations, maintaining its focus on strengthening credit sales and physical stores. "We believe in the management that is there, so it's a play of continuity," stated Beda. Furthermore, Mapa has already made changes to the company's board, expanding it from five to seven members, with the inclusion of Mapa's own partners and Jackson Schneider, former CEO of Embraer Defense and Security.

Since the announcement of the debt conversion in June 2023, Casas Bahia's shares have fallen by up to 5%, but subsequently saw a 70% increase, which the management team attributes to a "short squeeze". Today, the retailer is valued at R$ 2,5 billion on the stock exchange.

Mapa's partners also have a history of successful interventions in companies with management and balance sheet problems. At Plascar, for example, the management firm took control in 2019 after converting R$ 450 million in company debt and today sees production volume triple. The MRO logistics company, controlled by Mapa, also showed significant growth of 30% last year. "Our performance depends a lot on what we acquire. If the company has serious management problems, we need to change the management. If the problem is the balance sheet, we give the manager the opportunity to work with a lean balance sheet," said Mapa's partners.