SABMiller subsidiary Cerveceria Nacional has agreed to sell its milk and juice business to Costa Rica’s La Cooperativa de Productores de Leche Dos Pinos for $86m, SABMiller says. Panama-based Cerveceria Nacional diversifies away from what it calls a “legacy asset” and says handing off the milk and juice business will allow it to center on its beer and carbonated soft drinks operations. The transaction is subject to regulatory approvals. Ernst & Young advised Dos Pinos, with Morgan & Morgan as legal counsel. Arias, Fabriga & Fabriga was legal counsel to Cerveceria Nacional.
Category: M&A
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AMX Moves for CIE Media Division
America Movil has agreed to acquire the Corporacion de Medios Integrales unit of Mexico’s Corporacion Interamericana de Entretenimiento (CIE), the companies say. The Mexican telecom is paying MXP1.67bn ($132m) for the advertizing and publicity specialist. CIE will use the proceeds to repay debt and for working capital. The transaction is expected to close in 2Q 2013.
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BdB Targets Bigger Banvor Position
Banco do Brasil (BdB) and Banco Votorantim are studying the possibility of the government-backed lender buying additional shares in Banco Votorantim, Banco do Brasil says. Banco do Brasil holds 49.99% of the voting shares and 50% of the preferred shares Banco Votorantim, and is considering acquiring additional preferred shares. No specific target was discussed. BdB has used its position in Votorantim to expand in auto loans, paycheck loans and credit for mid-size companies. A larger piece might also be away to build up BdB’s investment banking activity.
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KOF Adds Bottler
Coca-Cola Femsa (KOF) continues its consolidation drive in Mexico with an agreement to buy Grupo Yoli in a MXP8.81bn ($700m) deal. The transaction includes Yoli receiving 42.4m newly issued KOF shares, valued at MXP180 each, subject to final adjustments, and KOF assuming MXP1.01bn in debt. KOF also picks up 10% of Promotora Industrial Azucarera, bringing its holding in the sugar producer to 36%. “We consider the transaction to be positive for [KOF], getting a presence in more territory and in two of the most important tourist destinations in Mexico, Acapulco and Ixatpa-Zihuatanejo,” Monex says in a note. The shop finds a 10.8x Ev/Ebitda multiple for the deal that is in line with KOF’s average for deals in the last three years. The addition of the southern Mexican family-owned bottler follows the agreement to buy a 51% stake in Coca-Cola’s Philippines bottling unit for $689m last month, and a string of previous acquisitions in Mexico. Yoli generated sales of more than MXP4bn in 2012. The transaction is subject to regulatory approval. Deloitte and Raz Guzman Abogados advised KOF, and Proyectos Financieros Especializados and Creel Garcia-Cuellar Aiza y Enriquez advised Yoli.
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Herdez Makes Food Buy
Grupo Herdez has agreed to acquire 67% of Mexican health and nutrition food company Grupo Nutrisa’s shares for some MXP3bn ($238m), according to people familiar with the matter. The deal, subject to approvals, comes at MXP91.00 per share. Herdez will seek to acquire the remaining shares via a public offering, it says. It plans to use a 2-year loan from Banco Inbursa to help fund the purchase. Nutrisa and Herdez decline to name advisors or provide additional information on the terms. Nutrisa shares closed at MXP84.50 Thursday.
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Developer Unloads SP Towers
EZ TEC Empreendimentos Participacoes has agreed to sell part of its EZ Towers project to Sao Carlos Emprednimentos e Participacoes for BRL564m ($276m), it says. The payment for what is known as Tower A will be made over the course of two years, and is subject to adjustments. The seller is also to transfer the BRL425m financing agreement with Bradesco to Sao Carlos.
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Impregilo Sheds Last of Piece of EcoRodovias
Italian builder Impregilo has agreed to sell the last 6.5% it holds in Brazil’s EcoRodovias to BTG Pactual, EcoRodovias says, for EUR193m ($258m) after taxes. The shares sold for BRL16.60 ($8.18) each. EcoRodovias closed at BRL18.00 Friday. Impregilo last year sold 19% of the highway concessionaire to Brazil’s Primav Construcoes, a builder, for BRL2.02bn. Primav, which is controlled by the Brazilian conglomerate CR Almeida, already owned 45% of EcoRodovias. Impregilo also sold 3.7% to BTG Pactual last year, and plans focus on infrastructure construction going forward.
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Mitsui Buys into Mexican Wind Farm
Mitsui has agreed to acquire a 50% stake in EDF’s Bii Stinu Mexican wind energy project, it says. The 164 megawatt farm in Oaxaca has a total project cost of MXP5.1bn ($399m), though Mitsui does not state the exact amount its MIT Renewables unit is to pay. The project is scheduled to begin operation in June, and has 15-year power purchase agreements with Arcelor Mittal Steel Lazaro Cardenas, Walmart Mexico, Grupo Modelo, Grupo Herdez and Continental Automotive Guadalajara.
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Spaniard Invests in Brazilian Plastic
Mercapital, a Spanish private equity firm, has agreed to make a EUR40m ($53m) investment in Group Betapack, it says. The investor specializing in European companies making LatAm moves takes 40% of Betapack, which through its Mirvi unit makes plastic caps and closures in Brazil. Betapack posted consolidated sales of EUR60m in 2012, and Mirvi the leader in manufacturing closures for oil in Brazil and a supplier to soft drink producers. Mirvi plans to use proceeds from the investment to expand into other LatAm countries, in addition to expanding its Brazilian plant.
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Elementia Enters Mexico JV
Mexico’s Elementia has agreed to put its Mexican cement assets into a JV with the Mexican assets of France’s Lafarge, the companies say. The JV is to be 53% owned by Elementia, and does not involve the transfer of any cash. The French cement company will contribute the Vito and Tula plants with a combined capacity close to 1m tons, while the Mexican building supply conglomerate will contribute the new 1m ton plant under construction in central Mexico. The transaction should close in 2H 2013. Officials at the companies were not available to comment on the agreement. Elementia has indicated that it targets an IPO in the medium term.