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MERGERS & ACQUISITIONS
MEXICO
MONTHLY ISSUE
2018SEPTEMBER
Seale & AssociatesCreative Solutions. Trusted Advice.
$23.2
$15.8
$8.6
$11.4
$4.4
$6.3
2014
2015
2016
2017
Sept YTD. '17
Sept YTD. '18
SUMMARY OF MERGERS & ACQUISITIONS IN MEXICO
In September 2018, 11 transactions were announced in Mexico, a decrease of 8% over last
month. Also, total reported deal value was US$243 million. Total deal volume and deal value
as of September 2018 were 156 and US$6,264 million respectively, representing a growth in
deal value of 43% and a decrease of 12% in deal volume over the same period last year.
229
226
210
240
178
Mexico M&A September 2018Seale & Associates
Creative Solutions. Trusted Advice.
156
Sources: Capital IQ, Mergermarket
Deal Volume in Mexico
# of Transactions per Month
Deal Volume and Value in Mexico
Annual Transactions (US$ billion)
21
17
24
14
18
27
2119 18
16
12 11
Oct17'
Nov17'
Dec17'
Jan18'
Feb18'
Mar18'
Apr18'
May18'
Jun18'
Jul18'
Aug18'
Sep18'
$7.3
$13.4
$9.6
$8.9
$8.7
$3.4
2014
2015
2016
2017
Sept YTD '17
Sept YTD '18
Mexican companies completed 4 acquisitions outside of Mexico with a reported value of US$507
million. September year to date volume of announced transactions was 31 with a combined
reported value of US$3,353 million, representing a decrease in value of 61% and a decrease in
volume of 3% compared to the same period last year.
53
47
49
39
32
Seale & AssociatesCreative Solutions. Trusted Advice.
31
Sources: Capital IQ, Mergermarket
Deal Volume of Mexican CompaniesAcquiring Abroad
# of Transactions per month
Deal Volume and Value of Mexican CompaniesAcquiring Abroad
Annual Transactions US$ billion
SUMMARY OF MERGERS & ACQUISITIONS BY MEXICAN COMPANIES ABROAD
Mexico M&A September 2018
0
1
2
3
4
5
6
Oct17'
Nov17'
Dec17'
Jan18'
Feb18'
Mar18'
Apr18'
May18'
Jun18'
Jul18'
Aug18'
Sep18'
57
21
21
18
16
12
10
Others
Real Estate
Financial
Minery
Energy
Consumer Goods
Industrial
Sources: Capital IQ, MergermarketSeale & Associates
Creative Solutions. Trusted Advice.
*
SUMMARY OF MERGERS & ACQUISITIONS BY INDUSTRY
Real Estate and finance lead M&A activity in Mexico during 2018 with 21 announced
transactions each one, representing 13% of total volumen, respectively. Meanwhile, the
industrial sector leads total acquisitions of Mexican companies abroad with 9 transactions
announced.
Deals in Mexico by Industry
YTD September 2018 Transactions 2018: 156
Representative International Acquisitions by Mexican Companies
YTD September 2018 Transactions: 31
*Telecommunications, Oil & Gas, Industrial, IT, Infrastructure and Healthcare
9
5
3
1
4
1
17
INDUSTRIALOIL & GAS
HEALTH CARE
CONSUMER GOODS
IT
ENERGY
REAL ESTATE
OTHERS
Mexico M&A September 2018
Deal Summary Target Buyer
Wal-Mart Inc., US food retail Company, announced the acquistion of DeliveryTechnologies SpA, working as Cornershopand based in Mexico and Chile, for US$225 million
Tarsus Group plc, an Irish integrated media company, announced the acquisition of E.J. Krause de Mexico, S.A. de C.V., holds and exhibits business events in Mexico, for US$18 million
Grupo AXO, apparel retail stores in Mexico, announced the acquisition of TENNIX S.A. de C.V., Mexican sport shoes stores and doing business as taf, for an undisclosed amount
First Cash, Inc., American pawn stores, announced the acquisition of 154 pawn stores in Mexico, for an undisclosed amount
Sources: Capital IQ, MergermarketSeale & Associates
Creative Solutions. Trusted Advice.
REPRESENTATIVE TRANSACTIONS IN MEXICO
154 Pawn Stores in Mexico
Mexico M&A September 2018
Deal Summary Target Buyer
Arca Continental through its subsidiary AC Bebidas, a Mexican bottler, announced the acquisition of an additional 38.52% stake of Corporacion Lindley, a Peruvian soft drink producer, for US$507 million, representing implied multiples of 11.0x EBITDA and 2.2x revenue, after this transaction ArcaContinental owns 99.78% of the shares of Lindley
Ropa Siete Leguas S.A. de C.V., a Mexican producer of denim garments, announced the acquisition of Santista SA, a Brazilian denim manufacturer, for an undisclosed amount
Sources: Capital IQ, MergermarketSeale & Associates
Creative Solutions. Trusted Advice.
REPRESENTATIVE INTERNATIONAL ACQUISITIONS BY MEXICAN COMPANIES
Mexico M&A September 2018
DEAL OF THE MONTH
WAL-MART INC., ANNOUNCED THE ACQUISITON OF DELIVERY
TECHNOLOGIES (CORNERSHOP)
On September 13, 2018, Wal-Mart Inc., supermarkets based in the
United States, announced the acquisition of Delivery Technologies
SpA, doing business as Cornershop and based in Chile and Mexico,
for US$225 million.
BUYER
+11,000 STORES
Cornershop has operations in
many cities of Mexico and Chile
Cornershop was founed by
two Chilenas, Daniel
Undurraga and Juan Pablo
Cuevas, and by a Swedish,
Oskar Hjertonsson
Cornershop is a home delivery platform for
supermarkets, pharmacies and specialty stores
FOUNDED IN 1962
+2.3 MILLION EMPLOYEES
TARGET
FOUNDED IN 2015
+1,000 DELIVERY AGENTS
Sources: Capital IQ, MergerMarket, TraxiónSeale & Associates
Creative Solutions. Trusted Advice.
Wal-Mart Inc. plans to
subsequently sell
Cornershop to Walmex
Mexico M&A September 2018
+11,000 STORES
DEALS IN MEXICO IN SEPTEMBER 2018
Sources: Capital IQ, MergermarketSeale & Associates
Creative Solutions. Trusted Advice.
Telecommunications IT Oil & Gas
Mining Real Estate Others Financial EnergyConsumer
GoodsIndustrial Infrastructure Healthcare
Mexico M&A September 2018
Seale & AssociatesCreative Solutions. Trusted Advice.
Sources: Capital IQ, MergermarketSeale & Associates
Creative Solutions. Trusted Advice.
REPRESENTATIVE INTERNATIONAL ACQUISITIONS BY MEXICAN COMPANIES IN SEPTEMBER 2018
Telecommunications IT Oil & Gas
Mining Real Estate Others Financial EnergyConsumer
GoodsIndustrial Infrastructure Healthcare
Mexico M&A September 2018
REPRESENTATIVE MEXICO ENGAGEMENTS
Washington, D.C. | Miami | Mexico City | Monterrey
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
Corporate
Finance
Advisory
Services
has formed a partnership in
the casting tools business
between
and
has acquired
has acquired
has been acquired by
has been acquired by
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has been acquired by
has been acquired by
merged its
beverage division
with
Acquisition
Advisory
Services
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 61% stake on
Acquisition
Advisory
Services
Corporate
Finance
Advisory
Services
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.
ADVISOR TO LEADING COMPANIES WORLDWIDE
CONTACT INFORMATION
950 N. Glebe RoadSuite 950Arlington, Virginia 22203Phone: +1 (703) 294 6770
37, Moliere GranadaMexico City, 11520Phone: +52 (55) 8000 7463
Please contact us if you would like further information about M&A trends and/or specific transaction multiples for your industry.
Mexico ContactInformation
Established presence in
Monterrey , Mexico
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* Multiple engagements
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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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1999
Founded
2016 2017 2018
James A. Seale
President
Brett M. Carmel
Senior Managing Director
Felipe Bueno Viesca
Senior Director
Sergio Garcia del Bosque
Managing Director
Adan Sierra
Vice President
Carlos Hernandez
Vice President
Alejandro Montemayor
Associate
Sofia Felix
Business Development
Andres Cardenas
Analyst
Armando RiosAnalyst
Miguel LealJunior Analyst
Diego HernandezJunior Analyst
Seale & AssociatesCreative Solutions. Trusted Advice.
Washington, D.C. | Miami | Mexico City | Monterrey