Colombia’s Nutresa has agreed to acquire Panamanian ice cream producer American Franchising (AFC) for $110m, it says. The purchase comes at 13.9x Ebitda, inclusive of real estate, the company points out, with the ice cream business itself is valued at 12x Ebitda. “AFC is one of the leading players in its category in the Central American region and its Ebitda margin is much higher than that of Grupo Nutresa, which will contribute positively to the Grupo Empersarial Nutresa profitability,” the company says. Nutresa operates in cold cuts, biscuits, chocolates, ice cream, coffee and pasta, and was looking for a buy in the region within its segments, says a person familiar with the deal. The company declined to comment as to how it is funding the purchase.
Category: M&A
Panama Mine Rejects Inmet Offer
Panamanian gold mine operator Petaquilla Minerals has voted to reject Inmet Mining’s revised buyout offer, Petaquilla says. The sweetened bid represents about 25% more than the original CAD112m ($112m) offer Inmet made in September, but the target says it “continues to fail to provide adequate value for Petaquilla shares.” Inmet is offering 0.0118 Inmet common shares and CAD0.001 for each Petaquilla share, or, alternatively up to CAD0.60 in cash or a combination of cash and shares. UBS is advising Petaquilla, and Dundee is advising Inmet. The proposal would contemplate a spinout of Petaquilla’s assets in Spain to Petaquilla holders, allowing them to keep the potential upside of Petaquilla’s only asset outside Panama. Inmet is developing the $6.2bn Cobre Panama copper-gold project, which is adjacent to Petaquilla’s Molejon gold mine.
Canadian Ups Aeromexico Loyalty Program Stake
Canadian loyalty marketing company Aimia has agreed to increase its stake in Aeromexico’s loyalty program by 20% for $88m, Aeromexico says. Following the deal, Amia would hold 49% of Premier Loyalty & Marketing, a holdco owned by Aimia and Grupo Aeromexico for Club Premier, Grupo Aeromexico’s loyalty program. The transaction is expected to close before the end of the year. Aimia first invested in PLM in 2010, and then made a second investment last year that brought it to 29%. RBC advised Aimia and Citi advised Grupo Aeromexico.
Peruvian Builder Adds in Chile
Peruvian construction company Grana y Montero has agreed to acquire a 74% stake in Vial y Vives Ingenieria y Construccion for $55.5m, it says. Minority shareholders will hold the remaining 26% of the Chilean construction and construction services company. Vial y Vives is an infrastructure specialist whose clients include SQM and Codelco. Additional details were not available, and officials at both parties were not available for comment.
Costa Ricans Get US Beer Brands
Cerveceria Costa Rica has agreed to buy North American Breweries for $388m cash from private equity fund KPS, it says. KPS formed the company, which operates the Genesse and Labatt brands in the US, in 2009 when it bought Labatt from Anheuser-Busch Inbev. UBS advised KPS and North American breweries on the sale. The transaction is expected to close by the end of the year.
ADM Set to Unload Gruma Stake
Archer Daniels Midland (ADM) has reached a preliminary deal to sell its 23.2% stake in Mexico’s Gruma to ASUR chairman Fernando Chico Pardo, according to an ADM spokeswoman. The price was not disclosed, though the 23.2% stake would be worth approximately MXP5.42bn ($418m) at the tortilla maker’s Tuesday’s MXP41.43 closing price. The agreement also includes minority positions in various joint ventures with Gruma and its affiliates, and is non-binding. Bank of America Merrill Lynch is advising ADM. The US agricultural group is currently pursuing a AUD2.7bn ($2.8bn) offer for Australia’s GrainCorp. ADM first bought into Gruma in 1996.
Experian Clinches Remainder of Brazilian Credit Bureau
Irish credit information provider Experian has agreed to spend BRL3.1bn ($1.5bn) to buy the remaining piece of Brazilian credit bureau Serasa from a group of banks, it says. The deal for the 29.6% stake had been expected since Experian originally bought control in 2007, though the transaction comes at a higher price given the growth in the industry since then. Experian will initially pay cash for the stake, and may also use existing credit facilities. The price may be subject to a cash adjustment. Experian paid $1.2bn for the first 70%, and had an option to buy a further stake, exercisable beginning June 2012. Since then, Experian has been negotiating with the group of banks to extend commercial data supply arrangements. Serasa has seen annual revenue growth of 20% and EBITDA growth of 28% over the last three years. An Experian spokesperson says that the multiple it pays in 2012 is actually slightly lower than the multiple it paid in 2007, citing growth in earnings as a key factor. Experian is paying 8.5x Ebitda for the whole 99.6%, analysts say. A recent change to legislation in Brazil expanding the amount of data used in credit checks means Serasa is likely to continue to grow quickly, with more individuals in credit databases and more frequent use of the data. Instead of simply a record of “negative” data such as defaults, “positive” “data” such as payments made will now be used in Brazil, part of a larger trend that has seen valuable risk implications in other LatAm countries. “If you can reduce the interest rates without increasing the risks to the bank then you have more stable banks and lower interest available to the Brazil consumer,” says an equity analyst covering the sector. The 29.6% interest is to be bought from BIU Participacoes – representing 24.4% and made up of the stakes of Itau and Bradesco – as well as by Banco Bradesco Financiamentos, Grupo Santander and HSBC. The deal is expected to close by the end of the year, pending shareholder and regulato
Cencosud Boosts Colombian Presence
Chile’s Cencosud has agreed to buy Carrefour’s Colombian business, it says, spending EUR2.0bn ($2.6bn) to gain about 18% of the country’s supermarket sector. The transaction is the latest example of a foreign player entering Colombia’s high-growth economy, and follows notable deals in the financial sector. Carrefour’s operations are second only to Grupo Exito, in a market with plenty of growth opportunity. “Retail has been a very attractive segment for foreign investment and is a sector that can continue to grow as the country grows,” Jorge Zuniga, equity analyst at Interbolsa, tells LatinFinance. Cencosud and others can still add a lot, particularly in less penetrated medium-sized cities, he adds. Smaller participants – Almacenes Olimpica La 14 and Alkosto are among the next largest – could also become targets for foreigners. The deal is seen coming at about 17x Ebitda. Cencosud will fund its purchase with a $2.5bn loan from JPMorgan. Credit Suisse advised the seller. The transaction is expected to close by the end of the year. Cencosud is Latin America’s third-largest retailer, operating supermarkets, malls, and department stores in Chile, Brazil, Peru, Argentina and Colombia, where it has had a smaller presence since 2007. Carrefour’s sale comes under a strategy of focusing on markets where it holds or aims to develop a leading position. The French company entered Colombia in 1998, and counts 72 hypermarkets, 16 convenience stores and 4 cash and carry stores, representing sales of EUR1.5bn in the 12 months to June 30.
Swiss Insurer Adds in Mexico
Swiss multiline property and casualty insurer ACE has agreed to buy Mexico’s ABA Seguros from Ally Financial for $865m cash, it says. Mexico’s fourth-largest auto insurer is the latest regional financial asset to change hands, as international and regional players seek expansion and high growth rates. For Ally, the move represents a continuation of the American automotive financial services group’s plan to shed non-core international assets to better focus on US operations. ACE, a longtime operator in Mexico, is seen as better equipped to expand the business as demand for insurance products grows along with the economy.”ACE is in the position where it can add to the capital position [of ABA] if it wants to,” Paul Newsome, analyst at Sandler O’Neil, tells LatinFinance. Though the disclosure on the ABA sale is not sufficient to make a judgment on value, he notes ACE has a strong track record with international acquisitions. ACE says it expects the deal to be accretive to earnings in the first year and to meet or exceed the company’s long-term return on equity target – about 15%, according to analysts – by the third year. Canadians TD and Scotiabank were said to be among the other interested bidders. The transaction is expected to be completed during the first half of 2013 and is subject to regulatory approvals. Spokespeople from both parties decline to comment on the financial advisors. Sullivan & Cromwell were legal advisors to Ally. ACE operates in 53 countries, including Argentina, Brazil, Chile, Colombia, Ecuador, Panama and Peru. It operates ACE Seguros in Mexico, and last month agreed to buy Fianzas Monterrey from New York Life Insurance Company for about $285m. Ally announced earlier this year the intent to seek strategic alternatives for businesses in Brazil, Mexico, Chile and Colombia.
Miner Continues Mexican Selloffs
AuRico Gold has sold out of its position in Mexico’s Endeavour Silver in a CAD95m ($97m) block trade, Endeavour says. The sale comes a week after the Canada-based miner operating in Mexico sold $750m in mining assets to Carlos Slim’s Minera Frisco. The 11m shares in Endeavour, also a Canadian Miner operating exclusively in Mexico, were sold at CAD8.60 each. CIBC, BMO Capital Markets and Dundee Securities managed the sale.