Brazilian food products company M. Dias Branco has agreed to buy Moinho Santa Lucia, it says, for up to BRL90m ($45m). It will pay BRL45m up front, followed by BRL27m over the next 6 years, and BRL18m at the end of the 6-year period. The transaction is subject to shareholder approval. M. Dias did not use an outside advisor, a company official says. Santa Lucia, a cookie and wheat products specialist, is based in the Northeastern state of Ceara.
Category: M&A
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ICA Expands in Peru
Empresas ICA has agreed to acquire a 51% stake in Peru’s San Martin Contratistas Generales, a construction company primarily dedicated to the mining sector, it says. Under the deal, the Mexican builder and engineer will pay $18m up front, and as much as $105m more, based on various performance measures, including San Martin’s 2011-2014 Ebitda. ICA estimated the total would be $80m-$100m. San Martin claims a $440m backlog as of year-end 2011, and booked $240m in revenue last year. The deal follows ICA’s international strategy of entering into and expanding in country’s via partnerships with experienced locals. Closing is expected by the end of June. BBVA advised ICA.
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Kroton Swallows Rival
Kroton Educacional has agreed to acquire educational operator Grupo Uniasselvi for BRL510 ($257m), it says, as it continues expansion. In the deal done through Kroton’s Editora e Distribuidora Educacional subsidiary, the higher education operator is to pay BRL335m immediately, and the remainder in 3 installments over the next 6 years. Uniasselvi, operating in Brazil’s southern states, is expected to book BRL260m in revenue in 2013, Kroton says. Kroton did not use an outside advisor, a company official says.
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Sul America Takes Control of Financial Specialist
Brazilian insurer Sul America has agreed to acquire the 83.27% of Sulacap that it does not own from Saspar for up to BRL285m ($141m), it says. The price for the stake in the financial services company represents a base price of BRL214m, which could be increased by up to BRL71m if certain milestones are met. Sulacap claims to be Brazil’s fourth-largest provider of titulos de capitalizacao, a Brazilian product that combines savings bonds with a lottery component. It has 8.9% of the market by revenue. Sulcap also owns 24.5% of of Caxia Capitalizacao, the market’s fifth largest player. The deal is subject to shareholder approval. Morgan Stanley advised Sul America, which is paying cash for the deal, according to a company official.
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Ultrapar Expands in Uruguay
Ultrapar Participacoes has agreed to acquire Uruguayan specialty chemicals maker American Chemical in a deal valued at $79m, subject to closing and related conditions, it says. Ultrapar subsidiary Oxiteno will use the asset, which includes American’s Montevideo plant, to become a stronger regional player in specialty chemicals and surfactants. An internal M&A team handled the deal for Ultrapar, which is funding the purchase with its own resources. The deal follows a BRL160m ($81m) agreement to acquire the Temmar port terminal in Brazil from Noble Group.
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US Industrials Player Moves into Peru
US-based equipment manufacturer Colfax has acquired 91% of Peruvian welding products supplier Soldex from Inversiones Breca, it says. The sale values Soldex at $235m, including the assumption of debt. Colfax, a fluid-handling systems specialist with a welding products business active in several South American countries, is using its own cash for the deal. Soldex has operations in Peru and Colombia. BBVA and Miranda & Amado advised Colfax on the deal, while MBA Lazard and Rebaza, Alcazar, de las Casas advised Breca.
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African Gets Remainder Brazil Gold Project
African gold miner AngloGold Ashanti has agreed to acquire the remaining 50% of the Serra Grande gold project from Canada’s Kinross Gold for $220m cash, it says. Serra Grande consists of the Mina III, Mina Nova and Mina Palmeiras mines, an open pit mine and a dedicated processing plant, located in the Brazilian state of Goias. AngloGold, which already holds a 50% stake in the mine, worked with law firm Slaughter and May on the deal and did not use an outside financial advisor, according to the company. AngloGold says the buy will increase annual production from Brazil by more than 500,000 ounces. “We see long-term, lower-risk, potential from Serra Grande, which is a key component of our strategy to grow the contribution from the Americas,” says Mark Cutifani, AngloGold Ashanti CEO, in a statement.
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Asian Adds Brazil Sugar Asset
Singapore-based food and agriculture player Olam International has agreed to acquire Brazilian sugar mill Usina Acucareira Passos (UAP) for BRL255 ($129m), it says. It plans to invest $116m during the next 5 years to improve growing and crushing capacity efficiency. Funded through internal accruals and borrowings, the investment is expected to be earnings accretive from the second year of operation. Olam expects to deliver an Ebitda margin in excess of 30% by 2016 and generate IRR in excess of 20% on the investment. UAP is located in Minas Gerais.
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Brazilian Airlines to Merge
Azul Linhas Aereas Brasileiras and TRIP Linhas Aereas have reached an agreement to merge operations, they say. A new holding company, to be called Azul TRIP, is to be two-thirds owned by Azul, with neither company putting fresh funds in to the deal. The combined entity would be the third-largest Brazilian carrier, with about 14% of the market, according to remarks made by TRIP chairman Renan Chieppe cited in local press and wire reports. The company will consider dropping one of the brands, according to reports. TRIP declines to disclose its advisor on the deal, and Azul does not return a request for comment.
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BTG PE Makes Domestic Goods Investment
BTG Pactual’s private equity arm has agreed to acquire 40% of retailer Leader Participacoes for BRL665m ($334m), it says. Under the terms of the deal, BTG’s funds will pay BRL558m for a 35.88% position. Leader will then hold a rights offering, through which BTG will buy new shares worth another 6.42%. The deal also allows BTG to buy an additional 20%-30% during a 90-day period following the rights offering. Leader operates in the clothing and housewares sector. The transaction is subject to regulatory approval.