MERGERS & ACQUISITIONS MEXICO JUNE 2018 MONTHLY ISSUE
MERGERS & ACQUISITIONS IN MEXICO In June 2018, 15 transactions were announced in Mexico, a decrease of 21% over last month. Also, total reported deal value was US$68 million, 79% lower versus last month. Total deal volume and deal value as of June 2018 were 114 and US$4,937 million, respectively. 17 26 18 21 17 24 14 18 27 21 19 15 Deal Volume in Mexico Jul Aug Sep Oct Nov Dic Jan Feb Mar Apr May Jun # of Transactions per Month 229 2014 $23.2 2015 $15.8 226 2016 $8.6 210 2017 $11.4 240 June YTD. '17 June YTD. '18 $3.7 $4.9 117 114 Deal Volume and Value in Mexico Annual Transactions (US$ billion)
MEXICAN COMPANIES ACQUIRING ABROAD Mexican companies completed 3 acquisitions outside of Mexico with a reported value of US$358 million. June year to date volume of announced transactions was 21 with a combined reported value of US$2,795 million. 8 7 6 5 4 3 2 1 0 Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun. 2014 2015 2016 2017 June YTD '17 June YTD '18 $7.3 $13.4 $9.6 $8.9 $6.3 21 $2.8 22 53 39 49 47 Deal Volume of Mexican Companies Acquiring Abroad # of Transactions per month Deal Volume and Value of Mexican Companies Acquiring Abroad Annual Transactions US$ billion
MERGERS & ACQUISITIONS BY INDUSTRY Mining industry leads M&A activity in Mexico during 2018 with 15 announced transactions, representing 13% of total volume. Meanwhile, the industrial sector leads total acquisitions of Mexican companies abroad with 8 transactions announced. Consumer Goods 6 Deals in Mexico by Industry IT 9 YTD June 2018 Transactions 2018: 114 Energy Financial Real Estate Minery 11 14 14 15 Others 46 Telecommunications, Oil & Gas, Industrial, Infrastructure and Healthcare 3 8 3 OIL & GAS INDUSTRIAL CONSUMER GOODS Representative International Acquisitions by Mexican Companies YTD June 2018 Transactions: 21
REPRESENTATIVE TRANSACTIONS IN MEXICO Deal Summary Target Buyer ACCO Brands Corporation, a manufacturer of consumer products based in the US, acquired GOBA Internacional, S.A. de C.V., a marketer of school products in Mexico, for US$31 million GOBA Internacional S.A. de C.V. Samsung Asset Management Co., a Korean fund management company, announced the acquisition of SCNT Power Norte S. de R.L. de C.V., a Mexican company dedicated to the generation of electric energy with fossil fuels, for US$31 million SCNT Power Norte S. de R.L. de C.V.
REPRESENTATIVE INTERNATIONAL ACQUISITIONS BY MEXICAN COMPANIES Deal Summary Target Buyer Coca-Cola FEMSA, a Mexican company that produces and distributes Coca-Cola trademark beverages, announced the acquisition of Montevideo Refrescos, S.R.L., a Uruguayan company that produces and distributes Coca-Cola beverage products, for US$251 million Grupo Cementos de Chihuahua, a Mexican company of products for the construction industry, announced the acquisition of Trident Cement Plant, a plant located in the US, for US$107 million Trident Cement Plant
DEAL OF THE MONTH Coca-Cola FEMSA announced the acquisition of Montevideo Refrescos S.R.L. for US$251 million Montevideo Refrescos produces, markets, and distributes Coca-Cola beverage products in Uruguay BUYER TARGET COCA-COLA FEMSA, ANNOUNCED THE ACQUISITION OF MONTEVIDEO REFRESCOS, S.R.L. Coca-Cola FEMSA is the largest franchise bottler of Coca-Cola trademark beverages in the world Montevideo Refrescos serves a market of 3.4 million consumers The integration of this franchise increases Coca-Cola FEMSA s presence to 11 countries 169 BRANDS 11 COUNTRIES +101,000 EMPLOYEES EXCLUSIVE DISTRIBUTOR IN URUGUAY +26,000 POINTS OF SALE FOUNDED IN 1943
DEALS IN MEXICO IN JUNE 2018 Mining Real Estate Others Financial Energy Consumer Goods Industrial Infrastructure Healthcare Telecommunications IT Oil & Gas
REPRESENTATIVE INTERNATIONAL ACQUISITIONS BY MEXICAN Creative COMPANIES Solutions. Trusted Advice. IN JUNE 2018 Mining Real Estate Others Financial Energy Consumer Goods Industrial Infrastructure Healthcare Telecommunications IT Oil & Gas
REPRESENTATIVE ENGAGEMENTS IN MEXICO intelectiva has merged with merged its beverage division with merged its beverage division with KFC Costa Rica from a business of has partnered with a subsidiary of has partnered with Acquisition Acquisition has been acquired by has formed a partnership in the casting tools business between and sold to has carved out and sold its concrete pumping assets in Mexico to has formed a partnership to market and develop oil storage and distribution in Mexico with sold to Corporate Finance has sold Cosmocel Química Holding company of has been acquired by to a business unit of Corporate Finance Corporate Finance dealers of acquired a 61% stake on has sold has been acquired by Grupo Galaz, S.A de C.V. has been acquired by workshop and store in Mexico City from Acquisition its sanitaryware business and to Washington, D.C. Mexico City Monterrey
Since 1999, 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 Mexico Contact Information James A. Seale President jseale@sealeassociates.com Brett M. Carmel Senior Managing Director bcarmel@sealeassociates.com Felipe Bueno Viesca Managing Director fbueno@sealeassociates.com Sergio Garcia del Bosque Managing Director sgarcia@sealeassociates.com Adan Sierra Vice President asierra@sealeassociates.com Carlos Hernandez Vice President chernandez@sealeassociates.com 1999 Founded Established presence in Monterrey, Mexico Alejandro Montemayor Associate amontemayor@sealeassociates.com 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sofia Felix Business Development sfelix@sealeassociates.com Multiple engagements CONTACT INFORMATION Andres Cardenas Analyst acardenas@sealeassociates.com 950 N. Glebe Road Suite 950 Arlington, Virginia 22203 Phone: +1 (703) 294 6770 37, Moliere Granada Mexico City, 11520 Phone: +52 (55) 8000 7463 Armando Rios Analyst arios@sealeassociates.com Miguel Leal Junior Analyst mleal@sealeassociates.com Diego Hernandez Junior Analyst dhernandez@sealeassociates.com Please contact us if you would like further information about M&A trends and/or specific transaction multiples for your industry. Washington, D.C. Mexico City Monterrey