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TRANSCRIPT
MERGERS &
ACQUISITIONS
MEXICO
MONTHLY ISSUE
2019DECEMBER
Seale & AssociatesCreative Solutions. Trusted Advice.
18 18
13
16
12
18
13
17 16
9 10
16
11
Dec
18'
Jan
19'
Feb
19'
Mar
19'
Apr
19'
May
19'
Jun
19'
Jul
19'
Aug
19'
Sep
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Oct
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Nov
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Dec
19'
$15.8
$8.6
$11.4
$8.6
$15.8
2015
2016
2017
2018
2019
SUMMARY OF MERGERS & ACQUISITIONS IN MEXICO
In December 2019, 11 transactions were announced in Mexico, decreasing 31.2% against
November of the ongoing year. In this period, the total reported deal value was US$3.4
billion. On the other hand, the volume and value of the announced transactions
accumulated to December 2019 were 169 and US$15.8 billion respectively, representing a
decrease in volume of 20.2% and an increase in value of 83.7% compared to the same period
last year.
Mexico M&A December 2019Seale & Associates
Creative Solutions. Trusted Advice.Sources: Capital IQ, Mergermarket
Deal Volume in
Mexico
# of Transactions
per Month
Deal Volume and
Value in Mexico
Annual Transactions
(US$ billion)
226
210
240
212
169
4
6
3 3
4
3
2
7
1
3
0
2
6
Dec
18'
Jan
19'
Feb
19'
Mar
19'
Apr
19'
May
19'
Jun
19'
Jul
19'
Aug
19'
Sep
19'
Oct
19'
Nov
19'
Dec
19'
Mexico M&A December 2019 Sources: Capital IQ, Mergermarket
Deal Volume
Abroad
# of Transactions
per Month
Deal Volume and
Value Abroad
Annual Transactions
(US$ billion)
$13.4
$9.6
$8.9
$5.2
$3.8
2015
2016
2017
2018
2019
47
49
40
39
47
SUMMARY OF MERGERS & ACQUISITIONS BY MEXICAN COMPANIES ABROAD
In December 2019, 6 transactions outside of Mexico were made, with a reported value of
US$9.8 million. December YTD volume of transactions is 40 with a combined value of
US$2.5 billion, representing a decrease in volume of 23.2% and an increase in value of 52.1%
compared to the same period last year.
Seale & AssociatesCreative Solutions. Trusted Advice.
Sources: Capital IQ, Mergermarket
YTD December 2019 Transactions: 40
Representative International Acquisitions by Mexican Companies
4
2
8
TELECOMMUNICATIONS
HEALTH
OTHERS
3INDUSTRIAL
MINING2
CONSUMER
GOODS11
FINANCIAL3
1REAL ESTATE
5 IT
1INFRASTRUCTURE
Mexico M&A December 2019
56
24
21
21
20
14
13
Others
Industrial
Financial
Mining
Real Estate
Consumer Goods
ITDeals in Mexico by Industry
YTD December 2019 Transactions: 169
*Energy, Infrastructure, Healthcare, Oil and Gas, and Others
*
SUMMARY OF MERGERS & ACQUISITIONS BY INDUSTRY
The industrial sector leads the M&A activity in Mexico so far with 24 announced transactions,
representing 14.2% out of the total amount. Meanwhile, the consumer goods sector leads
the accumulated acquisitions of Mexican companies abroad with 11 announced
transactions.
Seale & AssociatesCreative Solutions. Trusted Advice.
Deal Summary Target Buyer
On December 9th, 2019, Martinrea
International Inc., a Canadian automotive
company, acquired the operations for
structural components from Metalsa S.A.
de C.V., a Mexican auto parts manufacturer,
for US$19.5 million
On December 5th, 2019, Grupo Herdez S.A.B.
de C.V., a Mexican food producer, acquired
Cielito Querido Café, a Mexican coffee shop
operator, for US$14.4 million, representing
an implied multiple of 0.7x revenue
On December 11th, 2019, CTI Industries
Corporation, an American producer and
distributor of commercial and industrial films,
announced the acquisition of Flexo
Universal, a Mexican latex balloon producer,
for US$4.0 million
On December 18th, 2019, Industrias Peñoles
S.A.B. de C.V., a Mexican mining company,
acquired the Mogotes and Pistachon
Properties from Golden Minerals Company,
an American mining exploration company, for
US$3.0 million
Sources: Capital IQ, Mergermarket, ExpansiónMexico M&A December 2019
REPRESENTATIVE TRANSACTIONS IN MEXICO
Seale & AssociatesCreative Solutions. Trusted Advice.
Sources: Capital IQ, MergermarketMexico M&A December 2019
Deal Summary Target Buyer
On December 20th, 2019, Shirdi Sai
Electricals Limited, an Indian company
dedicated to producing transformers,
announced the acquisition of Indo Tech
Transformers, an India-based company from
Prolec GE, S. de R.L. de C.V., a Mexican
transformer company for US$9.8 million
On December 10th, 2019, KUA CANDY,
Mexican confections producer, announced the
acquisition of Impact Confections, Inc., an
American confections company
On December 23rd, 2019, FEMSA Comercio
S.A. de C.V., a Mexican conglomerate of the
food industry, acquired the remaining 40.0%
percent stake in Grupo Socofar, a Chilean
beauty and drug store operator, for an
undisclosed amount
REPRESENTATIVE TRANSACTIONS ABROAD
Seale & AssociatesCreative Solutions. Trusted Advice.
MARTINREA INTERNATIONAL INC.
ACQUIRED STRUCTURAL COMPONENTS
OPERATIONS FROM
METALSA S.A. DE C.V.
The transaction was paid for in cash, debt free and inclusive of
human capital. Operations acquired include facilities in Germany,
USA; Mexico, South Africa and two facilities in China. As well as over
2,000 employees
BUYER
Metalsa produces structural
components for both light and
heavy vehicles
TARGET
Sources: Capital IQ, Company Press
Release
The transaction was valued
at US$19.5 million
Mexico M&A December 2019
DEAL OF THE MONTH
FOUNDED IN 1987
US$2.9 BILLION IN
REVENUE
PRESENCE IN 9
COUNTRIES
FOUNDED IN 1956
US$1.8 BILLION IN
REVENUE
PRESENCE IN 5
COUNTRIES
Seale & AssociatesCreative Solutions. Trusted Advice.
Martinrea designs and engineers
aluminum products, including
engine blocks and suspension
modules, for the automotive
industry
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
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
has acquired
has acquired
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 majority
stake in
Acquisition
Advisory
Services
Corporate
Finance
Advisory
Services
Washington, D.C. | Miami | Mexico City | Monterrey
has partnered with
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.
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.
Mexico Contact Information
James A. Seale
President
Brett M. Carmel
Senior Managing Director & Co-founder
Felipe Bueno Viesca
Senior Director
Sergio Garcia del Bosque
Managing Director
Adan Sierra
Managing Director
Carlos Hernandez
Managing Director
Alejandro Montemayor
Senior Associate
Sofia Felix
Business Development
Armando Rios
Analyst
Aaron Garcia
Analyst
Daniel Schorn
Analyst
Nicolas Reynoso
Analyst
Miguel Leal
Business Development
Alberto Lopez
Junior Analyst
Alejandro Salinas
Junior Analyst
Hector Roman
Junior Analyst
www.sealeassociates.com
Seale & AssociatesCreative Solutions. Trusted Advice.
Washington, D.C. | Miami | Mexico City | Monterrey
Headquarter
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
Sources: Capital IQ, Mergermarket
Telecommunications IT Oil & Gas
EnergyMining Real Estate Others FinancialConsumer
GoodsIndustrial Infrastructure Healthcare
Mexico M&A December 2019
DEALS IN MEXICO IN DECEMBER 2019
Name Industry Description Name CountrySize
($USDMM)
%
Acquired
EV /
EBITDA
EV /
Revenue
Minera Fumarola, SA de CV Mining company Aquatio S.A. de C.V. MEX $0.1 100.0% - -
Pagos Intermex, S.A. De C.V.Family remittances between Mex
and USATransnetwork Corporation MEX - 100.0% - -
The Mogotes and Pistachon Properties Two properties based in MexicoIndustrias Peñoles, S.A.B. de
C.V.MEX $3.0 100.0% - -
The Cutting Tools Division of Quimmco
Centro Tecnológico, S.A. De C.V.Cutting Tools Seco Tools AB MEX - 100.0% - -
Mirabella Heights-280-unit Multifamily
PropertyMultifamily property Thayer Manca Residential LLC MEX - 100.0% - -
Structural Components for Passenger Cars
operations of Metalsa S.A. de C.VVarious structural autoparts Martinrea International Inc. MEX $19.5 100.0% - -
Megafarma, S.A. De C.V.Comercializer of active and
functional ingredientsAzelis Americas, LLC MEX - 100.0% - -
Flexo Universal, S.A. De C.V. Latex balloons manufacturer Individual Investors MEX $4.0 100.0% - -
Centro de Soluciones Inalámbricas, S.A.
de C.V.GPS satellite tracking developer Fleet Complete MEX - 100.0% - -
Cielito Querido Café Coffee Shop operator Grupo Herdez, S.A.B. de C.V. MEX $14.5 100.0% - 0.7x
Órgano Síntesis S.A. de C.V. Fine Chemicals manufacturer Pilot Chemical Corp. MEX - 100.0% - -
Target Buyer Financial Information
Seale & AssociatesCreative Solutions. Trusted Advice.
Sources: Capital IQ, MergermarketMexico M&A December 2019
DEALS ABROAD IN DECEMBER 2019
Telecommunications IT Oil & Gas
EnergyMining Real Estate Others FinancialConsumer
GoodsIndustrial Infrastructure Healthcare
Seale & AssociatesCreative Solutions. Trusted Advice.
Buyer
Name Country Industry Description NameSize
($USDMM)
%
Acquired
EV /
EBITDA
EV /
Revenue
Grupo Socofar CHL Drug stores operator Femsa Comercio S.A. de C.V. - 40.0% - -
Indo Tech Transformers Limited INDTransformer and sub-station
manufacturerShirdi Sai Electricals Limited $9.8 69.4% - 0.4x
Polimeros Gestion Industrial S.L. ESP Polycarbonate panels Grupo Verzatec, S.A. de C.V. - 100.0% - -
Vector ITC Group ESP Software for industrial automationValores Corporativos Softtek S.A.
de C.V.- 75.0% - -
Santec Medicalprodukte GmbH DEUManufacturer of medical
technology products
Internacional Farmacéutica S.A .
de C.V.- 100.0% - -
Impact Confections Manufacturing Facility
in Janesville, WisconsinUSA Confections Manufacturer KUA CANDY - 100.0% - -
Target Financial Information