Mexico Mergers & Acquisitions Update

Transcription

1 Mexico Mergers & Acquisitions Update 2014 Year in Review Washingn, D.C. Mexico City, Mexico Monterrey, Mexico

2 Mexican M&A Overview There were 163 closed transactions in Mexico during Total closed transaction value amounted approximately US$22 billion, a 39% increase as compared Although value increased, deal volume decreased 4.6% year over year. Mexico Hisrical Deal Value & Volume Transactions in Mexico by Industry 2014 Total Transactions: Other, 45 Real Estate & Hotels, 53 $12.9 $23.1 $15.6 $22.1 Energy, 5 Chemicals, Telecom, 7 Finance, 14 Consumer, 16 Metal & Mining, 18 Total Value (US$ billion) Total Volume (# of deals) Mexican Outbound M&A Overview There were 30 outbound transactions closed by Mexican companies during Total closed transaction value amounted approximately US$6.1 billion, a 234% increase as compared However, deal volume remained flat year over year. 24 Outbound Hisrical Deal Value & Volume Outbound Transactions by Industry 2014 Total Transactions: 30 Media, 2 Metal & Mining, 2 Chemicals, 2 Real Estate, 10 $6.1 Financial, 3 $2.1 $2.4 $ IT, 3 Other, 4 Consumer, 4 Total Value (US$ billion) Total Volume (# of deals) Mexican M&A Overview The p 5 transactions in dollar value in Mexico were acquisitions by Grupo Carso, AT&T, PPG, Fibra and Crown Holdings, gether representing US$13.2 billion or approximately 60% of the tal Mexico transaction value for The p 5 middle market transactions (<US$500m) in dollar value in Mexico were acquisitions led by Fresnillo, FINSA, Constellation Brands, Pro Agroindustria and Endo Pharmaceuticals, gether representing US$1.6 billion or approximately 7.2% of the tal Mexico transaction value in The most active industry segment by volume in Mexico was the Real Estate and Hotel secr, representing nearly one third of all transactions in M&A activity in this secr was led by Fibra Inn (BMV: FINN 13) with 14 transactions and Concentradora Fibra Hotelera Mexicana with 10 transactions. The p 5 outbound transactions by Mexican companies were acquisitions by America Movil, Bimbo, Tequila Cuervo, Mexichem and Alsea, gether representing US$5.3 billion or approximately 87% of tal outbound transaction value in The largest outbound transaction was the acquisition of Telekom Austria by America Movil for US$1.9 billion, representing around 30% of tal outbound transaction value in 2014.

3 Top Mexico M&A Transactions by Size The p 5 transactions in dollar value in Mexico were acquisitions by Grupo Carso, AT&T, PPG, Fibra and Crown Holdings, gether representing US$13.2 billion or approximately 60% of the tal Mexico transaction value for Buyer Transaction Overview Target Inmobiliaria Carso, S.A. de C.V., a Mexican holding company and Consorcio Empresarial de Capitales, S.A. de C.V., a subsidiary of Inmobiliaria Carso, acquired an 8.25% stake in America Movil, S.A.B. de C.V. (BMV: AMX L), a Mexican telecom company, from AT&T International, Inc., for US$5.6 billion. AT&T, Inc. (NYSE:T), a U.S. based telecom company, acquired Gsf Telecom Holdings, S.A.P.I. de C.V. (Iusacell), a Mexican telecom company, from Grupo Salinas, for a tal of US$2.5 billion. PPG Industries, Inc. (NYSE: PPG), a U.S. based manufacturer and distribur of coatings, optical, specialty materials and glass products, acquired Consorcio Comex, S.A. de C.V., a Mexican paint manufacturer, from the Achar family, for US$2.1 billion, which represents an enterprise value multiple of 2.1x revenue. Fibra Uno (BMV: FUNO11), a Mexican real estate trust, agreed acquire a portfolio comprised of 11 commercial properties, 3 office buildings and 1 industrial property collectively known as R15 for US$1.82 billion. R15 Crown Holdings, Inc. (NYSE: CCK), a U.S. based designer, manufacturer and distribur of packaging products, agreed acquire Empaque, a Mexican can and glass container manufacturer, from Heineken International, B.V., for US$1.2 billion, which represents an enterprise value multiple of 9.4x EBITDA and 1.9x revenue. Partners Group Holding, AG (SWX: PGHN), a Swiss private equity firm, agreed acquire Grupo Fermaca, S.A. de C.V., a Mexican natural gas pipeline company, from Ospraie Management in a management buyout for US$750 million. Grupo Salinas, a Mexican conglomerate, agreed acquire the remaining 50% stake it did not own in Grupo Iusacell, S.A. de C.V., a Mexican telecom company, from Grupo Televisa, S.A.B. (NYSE: TV), for US$717 million. Grupo Televisa, S.A.B. de C.V. (NYSE: TV), a Mexican media company, agreed acquire a 49% stake in Grupo T.V., S.A. de C.V., a Mexican cable operar, for US$654 million. Please contact us if you would like further information about M&A trends and/or specific transaction multiples for your industry at no cost or commitment and provided with complete discretion

4 Top Mexico Middle Market Transactions by Size The p 5 middle market transactions (<US$500m) in Mexico were acquisitions led by Fresnillo, FINSA, Constellation Brands, Pro Agroindustria and Endo Pharmaceuticals, gether representing US$1.6 billion or approximately 7.2% of the tal value in Buyer Transaction Overview Target Comercializadora de Metales Fresnillo, S.A. de C.V., a Mexican silver mining company, entered in a binding purchase and sale agreement acquire a 44% stake in Penmont JV, a group of Mexican gold mines, from Newmont USA for US$450 million. Finsa and Waln Street Capital, L.L.C., the Mexican and U.S. (respectively) real estate firms, acquired a Mexican Industrial Portfolio of real estate properties from IDI Gazeley Brookfield Logistic Properties for US$302 million. Mexican Industrial Portfolio Constellation Brands, Inc. (NYSE: STZ), a producer, importer and marketer of beer in several countries and Owens-Illinois, Inc. (NYSE: OI), a U.S. based manufacturer and seller of glass container products, agreed acquire a glass production plant in Nava, from Anheuser-Busch InBev, SA/NV (ENXTBR: ABI), for US$300 million. Pro-Agroindustria, S.A. de C.V., an international trader of hydrocarbons and subsidiary of PEMEX, signed a contract acquire the assets of Agro Nitrogenados, S.A. de C.V., a fertilizer plant, from Als Hornos de Mexico S.A.B de C.V., for US$275 million. Endo International, PLC (NASDAQGS: ENDP), an Ireland based manufacturer and distribur of pharmaceutical generic products, entered in a definitive agreement acquire Grupo Farmacéutico Somar, S.A.P.I. de C.V., a Mexican generic pharmaceutical producer, from the Ramos family, for US$269 million, representing an enterprise value multiple of 2.7x revenue. Grupo Trimex, S.A de C.V., a Mexican flour mill company, entered in an agreement acquire Molinera de Mexico, S.A. de C.V., a Mexican company that produces and distributes wheat flour, from Gruma, S.A.B. de C.V. (BMV: GRUMA B), for US$260 million. Elementia, S.A. de C.V., a Mexican provider of technology solutions in the areas of fiber cement, concrete, and other construction materials, agreed acquire the remaining 47% it did not own of Cemens Fortaleza, a Mexican cement manufacturer, from Lafarge, S.A. (ENXTPA: LG), for US$225 million. Promora Aeronáutica del Pacífico, S.A. de C.V., a Mexican operar of airports, acquired a 33.3% stake in Aeropuers Mexicanos del Pacifico, S.A. de C.V., from Abertis Infraestructuras, S.A. (CATS: ABE), for US$222 million. Please contact us if you would like further information about M&A trends and/or specific transaction multiples for your industry at no cost or commitment and provided with complete discretion

5 Top Mexico Outbound Transactions by Size The p 5 outbound transactions by Mexican companies were acquisitions by America Movil, Bimbo, Tequila Cuervo, Mexichem and Alsea, gether representing US$5.3 billion or approximately 87% of tal outbound transaction dollar value in Buyer Transaction Overview America Movil, S.A.B de C.V. (BMV: AMX L), the largest telecom company in Mexico, agreed acquire Telekom Austria, AG (DB: DTE), an Austrian provider of fixed and mobile telecom services, for US$1.961 billion, representing an enterprise value multiple of 4.7x EBITDA and 1.5x revenue. Target Grupo Bimbo, S.A.B. de C.V. (BMV: BIMBO A), the largest manufacturer and distribur of baked products in Mexico, agreed acquire Canada Bread Company, Ltd. (TSX: CBY), a Canadian manufacturer and distribur of fresh and frozen bread, from Maple Leaf Foods, Inc. (TSX: MFI), for US$1.671 billion, representing an enterprise value multiple of 8.4x EBITDA. Tequila Cuervo La Rojeña, S.A. de C.V., a Mexican producer of tequila, agreed acquire The Old Bushmills Distillery, a U.K. based whiskey and drinks producer, from Diageo, PLC (LSE: DGE), for US$704 million. Mexichem, S.A.B. de C.V., (BMV: MEXCHEM), a Mexican manufacturer and distribur of petrochemical products, signed an agreement acquire Dura-Line Holdings, Inc., a U.S. based manufacturer and distribur of communications and energy infrastructure products from CHS Private Equity V, LP, for US$630 million. Alsea, S.A.B. de C.V. (BMV: ALSEA), a Mexican franchise operar, and Alia Capital Partners, S.L., a Spanish private equity firm, agreed acquire Food Services Project, S.L., a Spanish restaurant franchise operar from Food Service Group, S.A., for US$362 million, representing an enterprise value multiple of 8.4x EBITDA and 1.0x revenue. Alsea will acquire 71.7% and Alia Capital will acquire the remainder. Mexichem, S.A.B. de C.V. (BMV: MEXCHEM), a Mexican manufacturer and distribur of petrochemical products, signed a definitive agreement acquire VESTOLIT, GmbH & Co. KG, a German operar of PVC production plants in Europe, from Strategic Value Partners, LLC, for US$293 million. Please contact us if you would like further information about M&A trends and/or specific transaction multiples for your industry at no cost or commitment and provided with complete discretion

6 Representative Mexico Engagements has acquired has merged its Beverage Division with has merged its Beverage Division with has merged with a business of Wise Foods, Inc. has been acquired by Grupo Galaz, S.A de C.V. has been acquired by has been acquired by has partnered with Sanitaryware business units and a subsidiary of Corporate Finance Acquisition Acquisition Acquisition Washingn, D.C. Mexico City, Mexico Monterrey, Mexico

7 Mexico Contact Information James A. Seale President Brett M. Carmel Senior Managing Direcr Felipe Bueno Viesca Managing Direcr Adrian E. Llerena Managing Direcr Since 1999, Seale & Associates has been the trusted advisor 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 serving clients with excellence and integrity, while offering innovative ideas and solutions address complex dealings. All securities related transactions are cleared through Seale Capital, Inc., a registered broker dealer and member of FINRA and SIPC. Advisor Leading Companies Worldwide Sergio Garcia del Bosque Direcr sgarcia@sealeassociates.com Adan Sierra Vice President asierra@sealeassociates.com * Multiple engagements Carlos Hernandez Vice President chernandez@sealeassociates.com Office Information Francisco Viornery Vice President fviornery@sealeassociates.com Edmi Vazquez Associate evazquez@sealeassociates.com Mauro Castro Senior Analyst mcastro@sealeassociates.com Carlos Barrios Analyst cbarrios@sealeassociates.com Oscar Tapia Junior Analyst otapia@sealeassociates.com 950 N. Glebe Road Suite 950 Arlingn, Virginia Phone: +1 (703) Paseo de la Reforma 115 Col. Lomas de Chapultepec Mexico City, Phone: +52 (55) Please contact us if you would like further information about M&A trends and/or specific transaction multiples for your industry at no cost or commitment and provided with complete discretion For more information please visit: Washingn, D.C. Mexico City, Mexico Monterrey, Mexico