Natural gas distributor Cofely do Brasil, a subsidiary of GDF Suez, has agreed to buy a majority stake in a Brazilian air conditioning maintenance firm Engenharia de Manutencao (Emac). The price for the 51% stake was undisclosed. Emac, which is unlisted, turned over $34.78m in 2012 and has 850 employees.
Category: M&A
Posted inDaily Brief
CemArgos Expands in CentAm
Cementos Argos (CemArgos) has agreed to buy the Honduras assets of France’s Lafarge for EUR232m ($306m), it says. The Colombian gets Lafarge’s 53.3% stake in its Honduran business. With an Ebitda of $65m in 2012, CemArgos says the transaction implies a 8.6x multiple, and notes the growth potential in the Honduran market. The buy is the latest in the western hemisphere for the unit of Grupo Argos, and follows the purchase of Lafarge’s US assets in 2011. CemArgos is to fund the purchase with proceeds from the $880m equity follow-on held earlier this year. Though the acquisition does not promise aggressive volume growth, Creditcorp, says “the impressive efficiency of the operations which reflect in a 49.6% Ebitda margin, well above the industry’s margins in the LatAm, Caribbean and US Regions.” It calls the price “fair.” The deal remains to be approved by Honduran authorities. CemArgos did not use an outside advisor, according to a spokeswoman. A Lafarge spokeswoman declines to comment on outside advisory. The minority position in the Lafarge Honduras unit is owned by investors including the IPM military pension fund, she says.
Posted inDaily Brief
KOF Adds in Brazil
Mexico’s Coca-Cola Femsa (KOF) has agreed to buy Spaipa, the second-largest privately owned Coca-Cola bottler in Brazil, for $1.86bn cash, it says. The deal follows an agreement for Companhia Fluminense de Refrigerantes in July, and gives KOF a leading share in the Brazilian market, according to brokerage Ve Por Mas, with 40%. The price implies a multiple of 13.8x Ebitda, the shop says, above the 11.2x seen in the Companhia Fluminense deal, though the premium is “justified” given the competitive advantages KOF gains. The buyer plans to finance the purchase with bank debt for which it has already secured formal commitments. Spaipa operates in the states of Sao Paulo and Parana, and generated $905m in revenue in the 12 months to June 30. The deal awaits regulatory approval.
Posted inMagazine
Mergers & acquisitions: One good turn
The growing ability of Latin corporates to buy, sell and merge with one another has paved the way for a new class of global champions – unthinkable a quarter century ago. By Ben Miller
Posted inMagazine
M&A deal of the quarter century: CVRD-Inco
$18.68bn acquisition, 2006 Vale’s $18.68 billion acquisition of Canada’s Inco in 2006 was, until 2013, the largest M&A deal involving a Latin American entity; it was also the first solid […]
Posted inMagazine
Privatization deal of the quarter century: Telecomunicações Brasileiras
$19bn break-up and sale, 1998 In the 1980s and 1990s, privatizations markedly reshaped Latin America’s corporate landscape. Not all of them were happy, however. In some cases deeply indebted sovereigns […]
Posted inDaily Brief
Cemex Realigns in Europe
Cemex has agreed to exchange assets with Switzerland Holcim as it seeks to improve its Ebitda and strategic footprint in Europe, it says. The Mexican cement company is to acquire all of Holcim’s assets in the Czech Republic, and will give Hoclim assets including one cement plant and two grinding mills in Western Germany. In Spain, the two will put all cement, ready-mix and aggregates operations in a vehicle to be 75% controlled by Cemex. Finally, Holcim will pay Cemex EUR70m ($93m) cash. “Our first take on the announcement is positive, as it should allow the company to generate recurring improvements in its Ebitda generation in Europe,” Barclays says in a report. The transactions are expected to generate synergies that will result in a recurring improvement in Cemex’s Ebitda of about $20m-$30m, beginning in 2014. The transactions are subject to the fulfillment of due diligence and regulatory approvals, but the company expects to get approvals before year-end. Cemex expects the consolidated return on equity will exceeded 10% by 2016. BBVA, Citi and Santander advised Cemex.
Posted inDaily Brief
US Developer Exits Mexico Retail Portfolio
US developer Kimco Realty has agreed to sell a four-property shopping center portfolio in Mexico to Planigrupo, for MXP1.2bn ($92m), it says. The portfolio includes the Plaza Universidad in Pachuca, La Nogalera in Saltillo, Gran Plaza in Cancun and Plaza Bella Huinala in Monterrey. The closing of this sale is subject to Mexican regulatory approval, and is expected to be completed during 4Q 2013. The deal follows another $274m portfolio sale to Planigrupo in May.
Posted inDaily Brief
America Movil OK with Rival’s Improved German Offer
America Movil (AMX) has given its approval for Telefonica to buy the E-Plus unit of KPN, for EUR8.55bn ($9.65bn), it says. Telefonica’s offer was improved Monday from EUR8.10bn. AMX owns 29.7% of KPN and is preparing a EUR 7.2bn tender for the remainder of the Dutch telecom, and had been unclear on its intentions for KPN’s German business. In the deal, KPN will receive EUR5.0bn cash for E-Plus and will get a 20.5% stake in Telefonica’s German business, up from the 17.6% previously agreed. Telefonica is also to sign an option to buy back 2.9% of its subsidiary after a year at a price of EUR510m. AMX plans to continue with its tender for complete ownership of KPN.
Posted inDaily Brief
American Betting on Brazil Education
US educational operator Laureate Education has entered into an alliance with Brazilian university chain FMU, FMU says. Neither party has officially made an announcement calling the transaction a sale, but FMU says the alliance must be approved by Brazilian antitrust regulators. Reports in the Brazilian press suggest terms could be announced as soon as this week. FMU has 90,000 students and annual revenue of BRL450m. Laureate has been in Brazil since 2005, when it acquired control of Anhembi Morumbi.