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Mexico Mergers & Acquisitions Update 2015 Year in Review Washington, D.C. Mexico City, Mexico Monterrey, Mexico
Transcript of Mexico Mergers & Acquisitions Update - Seale & … · non-alcoholic beverages, announced the...
Mexico Mergers & Acquisitions Update2015 Year in Review
Washington, D.C. Mexico City, Mexico Monterrey, Mexico
Consumer, 10
Real Estate & Hotels, 9
IT, 4
Industrial, 3
Financial, 2
Metal & Mining, 2
Other, 7
Real Estate & Hotels, 68
Metal & Mining, 28
Finance, 19
Consumer, 15
Industrial, 13
IT, 11
Healthcare, 10
Energy, 10
Telecom,9
Infrastructure, 7
Other, 23
There were 213 announced transactions in Mexico during 2015. Total closed transaction value amounted to approximately US$20.9
billion, a 9.5% decrease as compared to 2014. Although value decreased, deal volume increased 1.4% year over year.
Mexican M&A Overview
Mexican Outbound M&A Overview
• The top 5 transactions in dollar value in Mexico were acquisitions by Tiendas Soriana, Teva Pharmaceutical, Owens-Brockway,
Infraestructura Energetica Nova and Linzor Capital Partners, together representing US$9.3 billion or approximately 45% of the
total Mexico transaction value for 2015.
• The top 5 middle market transactions (<US$500m) in dollar value in Mexico were acquisitions led by Ontex Group, Fibra Uno,
David Martinez Guzman and two undisclosed buyers, together representing US$1.6 billion or approximately 7.6%% of the total
Mexico transaction value in 2015.
• The most active industry segment by volume in Mexico was the Real Estate and Hotel sector, representing nearly one third of all
transactions in 2015. M&A activity in this sector was led by Fibra MTY (BMV: FMTY 14) with 8 transactions and Fibra Uno
(BMV:FUNO 11) with 7 transactions.
• The top 5 outbound transactions by Mexican companies were acquisitions by Arca Continental, FEMSA Comercio, Alfa,
Finaccess Mexico and Grupo Aeroportuario del Pacifico, together representing US$2.2 billion or approximately 80% of total
outbound transaction value in 2015.
Mexican M&A Overview
Mexico M&A Report 2015
Transactions in Mexico by Industry2015 Total Transactions: 213
Outbound Transactions by Industry2015 Total Transactions 37
There were 37 outbound transactions announced by Mexican companies during 2015. Total closed transaction value amounted to
approximately US$2.7 billion, a 32% decrease as compared to 2014. However, deal volume remained flat year over year.
Mexico Historical Deal Value & Volume
Outbound Historical Deal Value & Volume
Sources: Capital IQ, MergerMarket, El Financiero, El Economista
$24.4
15.8
$23.1 $20.9
149
184210
213
2012 2013 2014 2015
Total Value (US$ billion) Total Volume (# of deals)
Sources: Capital IQ, MergerMarket, El Financiero, El Economista
$6.1$5.6
$4.0
$2.7
29 31
3537
2012 2013 2014 2015
Total Value (US$ billion) Total Volume (# of deals)
Buyer TargetTransaction Overview
Top Mexico M&A Transactions by Size
The top 5 transactions in dollar value in Mexico were acquisitions by Tiendas Soriana, Teva Pharmaceutical, Owens-Brockway,
Infraestructura Energetica Nova and Linzor Capital Partners, together representing US$9.3 billion or approximately 45% of the total
Mexico transaction value for 2015.
Mexico M&A Report 2015
Please contact us if you would like further information about M&A trends and/or specific transaction
multiples for your industry
Sources: Capital IQ, MergerMarket, El Financiero, El Economista
Teva Pharmaceutical Industries, Limited (NYSE:TEVA), Israeli producer,
manufacturer and distributor of pharmaceutical products, announced the acquisition of
Representaciones e Investigaciones Medicas, S.A. de C.V., a Mexican generic
drug manufacturing company, for US$2.3 billon, which represents an enterprise value
multiple of 10.1x revenue
Linzor Capital Partners, L.P., a Chilean private equity fund, announced the
acquisition of the Mexican Equipment Lending And Leasing Platform from General
Electric Capital Corporation, for US$1.1 billon.
Infraestructura Energetica Nova, S.A.B. de C.V. (BMV:IENOVA *), a Mexican
builder and operator of energy infrastructure projects, announced the acquisition of
50% of the remaining stake in Gasoductos de Chihuahua, S. de R.L. de C.V., a
company that engages in the transportation and storage of fuel in Mexico and
subsidiary of Petróleos Mexicanos, S.A. de C.V., for US$1.3 billon.
First Reserve Corporation & BlackRock Infrastructure Investment Group,
American private equity funds, acquired a 45% stake in Los Ramones II project
which consists in the installation of natural gas pipelines from P.M.I. Comercio
Internacional, S.A. de C.V., a subsidiary of Petroleos Mexicanos, S.A. de C.V., for
US$900 million.
Alfa, S.A.B. de C.V. (BMV:ALFA A), a Mexican conglomerate, announced the merger
of Alestra, S. de R.L. de C.V, a Mexican telecom and IT services provider and current
subsidiary, with Axtel, S.A.B. de C.V. (BMV:AXTEL CPO), a Mexican telecom
services provider, for US$842 million. As a result of the transaction, Alfa will retain
51% stake in the new company.
Tiendas Soriana, S.A. de C.V., a Mexican supermarkets operator, announced the
acquisition of 146 store units property of Controladora Comercial Mexicana, S.A.B..
de C.V. (BMV:COMERCI UBC), a Mexican supermarket chain, for US$2.5 billion
representing an enterprise value multiple of 7.7x EBITDA and 0.6x revenue
Owens-Brockway Glass Container, Inc., an American producer and seller of
packaging glass and subsidiary of Owens Illinois Group, Inc., acquired 5 plants in
Mexico, 1 in Bolivia and operations in U.S. from Vitro, S.A.B. de C.V. (BMV:VITRO
A), a Mexican producer and seller of glass containers, for US$2.2 billon.
Various
Operations
Pipelines in
Chihuahua
Los Ramones II
Project
Mexican
Equipment
Lending And
Leasing Platform
Grupo Televisa, S.A.B. de C.V. (NYSE: TV), a Mexican media and communication
company, agreed to acquire Cablevision Red, S.A. de C.V., a Mexican telecom
company, for US$696 million.
IFM Investors Pty, Ltd., an Australian asset management firm, acquired a 25% stake
in Organizacion de Proyectos de Infraestructura, a subsidiary of Concesiones
Mexiquenses from OHL Mexico, S.A.B. de C.V. (BMV:OHLMEX), a Mexican
operator of transportation infrastructure concessions, for US$599 million.
Top Mexico Middle Market Transactions by Size
Buyer TargetTransaction Overview
The top 5 middle market transactions (<US$500m) in dollar value in Mexico were acquisitions led by Ontex Group, Fibra Uno,
David Martinez Guzman and two undisclosed buyers, together representing US$1.6 billion or approximately 7.6%% of the total
Mexico transaction value in 2015.
Mexico M&A Report 2015
Please contact us if you would like further information about M&A trends and/or specific transaction
multiples for your industry
Sources: Capital IQ, MergerMarket, El Financiero, El Economista
Oil Exploration
Properties
Office
Buildings
Undisclosed
Buyer
Undisclosed
Buyer
Hotel Princess y
Hotel Pierre
Marques
David
Martinez
Guzman
Ontex Group, N.V., (ENXTBR:ONTEX), a Belgian manufacturer and distributor of
disposable hygienic products, announced the acquisition of Productos
Internacionales MABE, S.A. de C.V., a Mexican manufacturer and seller of
disposable hygienic products, for US$434 million, representing an enterprise value
multiple of 1.0x revenue.
Fibra Uno (BMV: FUNO11), a Mexican real estate investment trust acquired 6 office
buildings in Mexico City from an Unknown Buyer for US$301 million.
An Undisclosed Buyer has announced the acquisition of exploration properties from
Marathon Oil Corporation (NYSE:MRO), an American energy Company, for US$205
million.
An Undisclosed Buyer acquired 23 properties in Mexico City comprised of nine
property portfolio totaling 2.7 million square feet, a portfolio of 13 net-leased properties
and a shopping center from Kimco Realty Corporation (NYSE:KIM), an American
independent real estate investment trust, for US$201 million.
Fibra Uno (BMV: FUNO11), a Mexican real estate investment trust has announced
the acquisition of the construction project called Mitikah in Mexico City, for US$185
million.
Grupo Autofin Mexico, S.A. de C.V., a Mexican private conglomerate, acquired
Hotel Princess y Hotel Pierre Marques from Global Hospitality Investments for
US$180 million.
David Martinez Guzman, a Mexican investor, has announced the acquisition of
19.2% in stock of Vitro, S.A.B. de C.V. (BMV:VITRO A), a Mexican producer and
seller of glass containers, for US$282 million.
23 properties in
Mexico
Impulsora Azucarera Del Noroeste, S.A. de C.V., a Mexican manufacturer and
marketer of sugar, acquired the Atencingo and San Cristobal mills from Mexican
Ministry of Finance and Public Credit, for US$127.8 million.
Impulsora
Azucarera
del Noroeste
Fibra UNO (BMV:FUNO 11), a Mexican real estate investment trust, acquired three
shopping centers in Mexico City for US$111.1 million.
Three
Shopping
Centers
Buyer TargetTransaction Overview
Top Mexico Outbound Transactions by Size
The top 5 outbound transactions by Mexican companies were acquisitions by Arca Continental, FEMSA Comercio, Alfa, Finaccess
Mexico and Grupo Aeroportuario del Pacifico, together representing US$2.2 billion or approximately 80% of total outbound
transaction value in 2015.
Mexico M&A Report 2015
Sources: Capital IQ, MergerMarket, El Financiero, El Economista
Please contact us if you would like further information about M&A trends and/or specific transaction
multiples for your industry
Grupo Inversor Intelectiva, a diversified Mexican family investor, acquired the Costa
Rican KFC franchise along with 32 restaurants from QSR International, LLC,
proprietary and operator of fast food establishments in Costa Rica, for an undisclosed
amount. Seale&Associates advised Grupo Inversor Intelectiva.
Arca Continental, S.A.B. de C.V. (BMV:AC*), a Mexican producer and distributor of
non-alcoholic beverages, announced the acquisition of 47% stake in Corporacion
Lindley, S.A. (BVL:CORLINI1), a Peruvian producer and distributor of Coca-Cola
products, for US$760 million. In subsequent transactions, Arca reached 60%
participation in the company.
Femsa Comercio, S.A. de C.V., the largest convenience store operator in Mexico,
agreed to acquire 60% stake in Grupo Socofar, a Chilean pharmacy operator, for
US$600 million.
Alfa, S.A.B. de C.V. (BMV:ALFA A), a Mexican conglomerate, acquired 37% stake in
Sigma & WH Food Europe, S.L. de WH Group Limited (SEHK:288), a Chinese
investment holding company, for US$354 million.
Finaccess Mexico, S.A. de C.V., a Mexican investment fund operator, acquired a
31.1% stake in AmRest Holdings, SE (WSE:EAT), a Polish operator and manager of
fast food and casual restaurants, property of private equity fund Warburg Pincus,
LLC, for US$299 million. The transaction represents an enterprise value multiple of
1.4x revenue and 11.4x EBITDA.
Grupo Industrial Saltillo, S.A.B. de C.V. (BMV:GISSA A), a Mexican conglomerate
of industrial and consumption products, acquired Automotive Components Europe,
S.A. (WSE:ACE), Polish producer and seller of products for the automotive industry,
from a group of sellers for US$112 million.
Costa Rican
KFC franchise
Grupo Aeroportuario del Pacifico, S.A.B. de C.V. (BMV:GAP B), a Mexican
operator and manager of airports, acquired Desarrollo de Concesiones
Aeroportuarias, S.A. from Abertis Infraestructuras, S.A. (CATS:ABE), a Spanish
infrastructure and toll road operator and constructor, for US$191 million. Airport operator in LatAm
Corporate Finance
Advisory Services
Buy Side
Representative Mexico Engagements
Buy Side
has acquired
Wise Foods, Inc.
Sell Side
has sold
to
Sell Side
has sold
to
Sanitaryware business
units
and
Sell Side
has merged with
a business of
Sell Side
has been acquired by
Sell Side
has merged
its Beverage
Division with
Sell Side
Grupo Galaz, S.A de C.V.
has been acquired by
Sell Side
has merged
its Beverage
Division with
Sell Side
has sold
to
Sell Side
has been acquired by
Sell Side
has sold
to
Sell Side
has partnered with
a subsidiary of
Buy Side
Acquisition
Advisory Services
Buy Side
Washington, D.C. Mexico City, Mexico Monterrey, Mexico
Buy Side
Acquisition
Advisory Services
Acquired
KFC Costa Rica
from
Mexico Contact Information
James A. Seale
President
Brett M. Carmel
Senior Managing Director
Felipe Bueno Viesca
Managing Director
Adrian E. Llerena
Managing Director
Sergio Garcia del Bosque
Managing Director
Adan Sierra
Vice President
Carlos Hernandez
Vice President
Francisco Viornery
Vice President
Oscar Tapia
Analyst
Since 1999, Seale & Associates has been the trusted advisor to highly
respected public and private companies from around the world, with a
track record of success in a diverse range of industries. Seale is an elite
boutique global investment banking firm with extensive experience in
mergers and acquisitions (M&A), corporate finance advisory, and
enterprise level strategy consulting. Our experienced team of
professionals are committed to serving clients with excellence and
integrity, while offering innovative ideas and solutions to address
complex dealings. All securities related transactions are cleared through
Seale Capital, Inc., a registered broker dealer and member of FINRA
and SIPC.
Washington, D.C. Mexico City, Mexico Monterrey, Mexico
For more information please visit: www.sealeassociates.com
Office Information
950 N. Glebe Road
Suite 950
Arlington, Virginia 22203
Phone: +1 (703) 294 6770
Paseo de la Reforma 115
Col. Lomas de Chapultepec
Mexico City, 11000
Phone: +52 (55) 8000 7463
* Multiple engagements
Advisor to Leading Companies Worldwide
Please contact us if you would like further information about
M&A trends and/or specific transaction multiples for your
industry.
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