Creative Solutions. Trusted...

MERGERS &

ACQUISITIONS

MEXICO

MONTHLY ISSUE

2020SEPTEMBER

Seale & AssociatesCreative Solutions. Trusted Advice.

$8.6

$11.4

$8.6

$15.4

$7.6

$0.8

2016

2017

2018

2019

Sep YTD '19

Sep YTD '20

240

132

In September 2020, 9 transactions were announced in Mexico, representing an increase of 1 in

terms of volume versus the prior month. Compared to September 2019 YTD, September 2020

YTD volume of transactions decreased 30.3%.

Mexico M&A September 2020 1

210

212

169


92

SUMMARY OF MERGERS & ACQUISITIONS IN MEXICO

Deal Volume in

Mexico

# of Transactions

per Month

Deal Volume

and Value in

Mexico

Annual

Transactions

(US$ billion)

Sources: Capital IQ, Companies Press Releases

Disclaimer: the presented data is comprised of transactions of mature-stage companies, and it is poised to exclude

venture capital and capital raises

9 10

16

119

14 13

6

9

12 12

8 9

Sep

19'

Oct

19'

Nov

19'

Dec

19'

Jan

20'

Feb

20'

Mar

20'

Apr

20'

May

20'

Jun

20'

Jul

20'

Aug

20'

Sep

20'

$9.6

$8.9

$5.2

$3.8

$2.5

$1.5

2016

2017

2018

2019

Sep YTD '19

Sep YTD '20

In September 2020, 1 transaction outside of Mexico was announced, representing a decrease

of 1 in terms of volume versus the prior month. Compared to September 2019 YTD,

September 2020 YTD volume of transactions decreased by 50.0%.

2

SUMMARY OF MERGERS & ACQUISITIONS BY

MEXICAN COMPANIES ABROAD


49

39

32

47

33

16

Deal Volume

# of

Transactions

per Month

Deal Volume

and Value

Annual

Transactions

(US$ billion)

Mexico M&A September 2020


3

0

2

6

2

6

1

0

1

3

0

2

1

Sep

19'

Oct

19'

Nov

19'

Dec

19'

Jan

20'

Feb

20'

Mar

20'

Apr

20'

May

20'

Jun

20'

Jul

20'

Aug

20'

Sep

20'

Disclaimer: the presented data is comprised of transactions of mature-stage companies, and it is poised to exclude

venture capital and capital raises

24

22

10

9

7

7

6

5

2

Others

Mining

IT

Industrial

Financial

Consumer

Real Estate

Health

Infrastructure

1

The Industrial sector remains the leader in M&A activity by Mexican companies abroad, with

6 transactions as of September YTD 2020, representing 37.5% of the total announced

transactions in the period.

YTD September 2020

Transactions: 92

*Energy, Oil & Gas, and others

3

The Mining sector remains the leader in domestic M&A activity in Mexico, with 22

announced transactions as of September YTD 2020, representing 23.9% of the total

announced transactions in the period.

YTD September 2020 Transactions: 16


2

6INDUSTRIAL

3INFRASTRUCTURE

2 CONSUMER

1 OTHERS

Deals in Mexico by Industry

SUMMARY OF MERGERS & ACQUISITIONS BY INDUSTRY

Representative Acquisitions by Mexican Companies Abroad

REAL ESTATE

1OIL & GAS

*

Mexico M&A September 2020Sources: Capital IQ, Companies Press Releases

HEALTH

Transaction Summary Buyer Target

Grupo Bimbo, S.A.B. de C.V., a Mexican

company that produces, distributes and sells

various bakery products, announced the

acquisition of the remaining 47.6% stake of

Blue Label México (Qiubo), a fintech

company that operates through POS services,

for US$11.5 million

CT Internacional del Noroeste, S.A. de C.V.,

a Mexican wholesale information

technologies company, announced the

acquisition of a minority stake in Lanix

Internacional, S.A. de C.V., a Mexican

company that manufactures computer

equipment and mobile phones

Glisco Partners Inc., a Mexican private equity

firm, announced the acquisition of a 30.1%

stake in Mezcal de Amor S.A.P.I. de C.V., a

Mexican distillery that specializes in the

production of mezcal

2ndsite, Inc. (Freshbooks, Inc.), a Canadian

company that develops a cloud accounting

software for small businesses, announced the

acquisition of Facturama, a Mexican

company that develops and operates an

electronic billing software

FreightCar America, Inc., an American railcar

manufacturer, announced the acquisition of

the remaining 50.0% stake of the Castaños

Plant, a railcar manufacturing facility in

Mexico, from Fabricaciones y Servicios de

México, S.A. de C.V.,

4

REPRESENTATIVE TRANSACTIONS IN MEXICO IN

SEPTEMBER 2020

Seale & AssociatesCreative Solutions. Trusted Advice.Mexico M&A September 2020

Sources: Capital IQ, Companies Press Release

a subsidiary of

Castaños Plant

from

Transaction Summary Buyer Target

Invekra S.A.P.I de C.V., a Mexican

pharmaceutical conglomerate and holding

company for Laboratorios Sanfer, among

others, announced the acquisition of a

majority stake in Laboratorio Pasteur S.A., a

Chilean pharmaceutical company that

manufactures generic and clinical drugs

4

REPRESENTATIVE TRANSACTIONS BY

MEXICAN COMPANIES ABROAD IN SEPTEMBER 2020

Seale & AssociatesCreative Solutions. Trusted Advice.Mexico M&A September 2020

Sources: Capital IQ, Companies Press Release

SEPTEMBER 2020 – DEAL OF THE MONTH

GRUPO BIMBO

ACQUIRED

QIUBO

BUYER

“This is in line with Blue Label’s strategy to refocus its

efforts on its South African Distribution businesses and

to deleverage the business in order to ensure a more

robust and liquid balance sheet going forward”,

Blue Label Telecoms Limited

via its Press Release

TARGET

Blue Label México (Qiubo), is a fintech

company that operates through POS services,

and provides payment solutions for the popular

retail sector


Grupo Bimbo, S.A.B de C.V. is a Mexican

company that, along with its subsidiaries,

produces, distributes and sells various bakery

products in Mexico and worldwide

6

FOUNDED IN

1945

PRESSENCE IN

+30

COUNTRIES

+100,000

EMPLOYEES

FOUNDED IN

2008

PRESSENCE IN

+2,000

MUNICIPALITIES

+500

EMPLOYEES

On September 17th, Grupo

Bimbo, S.A.B. de C.V. announced

the acquisition of the remaining

47.6% of Qiubo, from its co-

shareholder, Blue Label Telecoms

Limited, for US$11.5 million


Sources: Capital IQ, Company Press Release

a subsidiary of

REPRESENTATIVE MEXICO ENGAGEMENTS

to

Holding company of

merged its

beverage division

with

has merged with

a business of

has partnered with

a subsidiary of

has sold

to

its sanitaryware business

and

a business unit of

has sold

Cosmocel Química

to

intelectiva®

has acquired

KFC Costa Rica

from

sold

to

sold

to

Grupo Galaz, S.A de C.V.

dealers of

has partnered with

workshop and store in

Mexico City from

Acquisition

Advisory

Services

has formed a partnership in

the casting tools business

between

and

has acquired

has acquired

has been acquired by


has acquired

has acquired



merged its

beverage division

with

has carved out and sold

its concrete pumping

assets in Mexico

has formed a

partnership to market

and develop oil storage

and distribution in

Mexico with

Corporate

Finance

Advisory

Services

Corporate

Finance

Advisory

Services

acquired a majority

stake in

Acquisition

Advisory

Services

Washington, D.C. | Miami | Mexico City | Monterrey




Grupo Educativo

IEJV

acquired

The Zinc Recycling

Business

of

Since 1999, Seale & Associates has been the trusted advisor

to respected public and private companies from around the

world. Seale is a global investment bank with extensive

experience in mergers and acquisitions (M&A), corporate

finance advisory, and enterprise level strategy consulting with

a track record of success in a diverse range of industries. Our

experienced team of professionals are committed to serving

clients with excellence and integrity, while offering innovative

ideas and solutions to address complex transactions.

ADVISOR TO LEADING COMPANIES WORLDWIDE

CONTACT INFORMATION

Please contact us if you would like further information about M&A trends and/or

specific transaction multiples for your industry

Contact Information

James A. Seale

President

[email protected]

Brett M. Carmel

Senior Managing Director

[email protected]

Felipe Bueno Viesca

Senior Director

[email protected]

Sergio Garcia del Bosque

Managing Director

[email protected]

Adan Sierra

Managing Director

[email protected]

Carlos Hernandez

Managing Director

[email protected]

Alejandro Montemayor

Senior Associate

[email protected]

Armando Rios

Associate

[email protected]

Aaron Garcia

Analyst

[email protected]

Sofia Felix

Business Development

[email protected]

Miguel Leal

Business Development

[email protected]

Alejandro Salinas

Junior Analyst

[email protected]

Andre Leroy

Junior Analyst

[email protected]

Daniela Aldasoro

Junior Analyst

[email protected]

Jose Pablo Arronte

Junior Analyst

[email protected]

Regina Labardini

Junior Analyst

[email protected]

www.sealeassociates.com


Washington, D.C. | Miami | Mexico City | Monterrey

Headquarters

901 N. Glebe Road

Suite 500

Arlington, Virginia

+1 (703) 294 6770

Latin America Office

Av. Ejército Nacional 769

2nd floor

Mexico City

+52 (55) 8000 7463

APPENDIX

DEALS IN MEXICO IN SEPTEMBER 2020


Telecommunications IT Oil & Gas

EnergyMining Real Estate Others Financial Consumer Industrial Infrastructure Healthcare



DEALS ABROAD IN SEPTEMBER 2020

Name Industry Description Name CountrySize

($USDMM)

%

Acquired

EV /

EBITDA

EV /

Revenue

Mineral Property in Colima, Mexico Mineral property Asia Metals, Inc. USA - 100.0% - -

Mezcal de Amor S.A.P.I de C.V. Mezcal distillery Glisco Partners, Inc. MEX - 30.1% - -

Lanix Internacional, S.A. de C.V.Computer equipment

manufacturing

CT Internacional del Noroeste, S.A.

de C.V.MEX - - - -

Facturama Electronic billing software 2ndsite, Inc. CAN - 100.0% - -

Bio Pappel, S.A.B. de C.V. Paper and paper products Enverlis, S.A. de C.V. MEX $58.0 17.0% 3.1x 0.6x

MVZ Silver-Gold Mine Property in

Chihuahua Mexico of Grupo Minero Diflor

S.A. de C.V.

Silver and gold mining property Global Li-Ion Graphite Corp. CAN - 100.0% - -

Neximo Holding SAS Digital real estate SAS I@D International FRA - - - -

Blue Label Mexico Payment solutions Grupo Bimbo, S.A.B. de C.V. MEX $11.5 47.6% - -

Castaños Plant in Mexico of

Fabricaciones y Servicios de México, S.A.

de C.V.

Railcar manufacturing facility FreightCar America, Inc. USA - 50.0% - -

Target Buyer Financial Information

Buyer

Name Industry Country Description NameSize

($USDMM)

%

Acquired

EV /

EBITDA

EV /

Revenue

Laboratorio Pasteur S.A. CHL Generic and clinical drugs Invekra S.A.P.I. de C.V. - - - -

Financial InformationTarget

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