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MERGERS & ACQUISITIONS MEXICO MONTHLY ISSUE 2018 NOVEMBER Seale & Associates Creative Solutions. Trusted Advice.

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MERGERS & ACQUISITIONS

MEXICO

MONTHLY ISSUE

2018NOVEMBER

Seale & AssociatesCreative Solutions. Trusted Advice.

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24

14

18

27

2119 18

16

12 11

15

6

Dec17'

Jan18'

Feb18'

Mar18'

Apr18'

May18'

Jun18'

Jul18'

Aug18'

Sep18'

Oct18'

Nov18'

$23.2

$15.8

$8.6

$11.4

$9.4

$7.4

2014

2015

2016

2017

Nov YTD. '17

Nov YTD. '18

SUMMARY OF MERGERS & ACQUISITIONS IN MEXICO

In November 2018, 6 transactions were announced in Mexico, an increase of 60% over last

month. Also, total reported deal value was US$185 million. Total deal volume and deal value

as of November 2018 were 177 and US$7,381 million respectively, representing a decrease

in deal value of 21% and a decrease of 18% in deal volume over the same period last year.

229

226

210

240

216

Mexico M&A November 2018Seale & Associates

Creative Solutions. Trusted Advice.

177

Sources: Capital IQ, Mergermarket

Deal Volume in Mexico

# of Transactions per Month

Deal Volume and Value in Mexico

Annual Transactions (US$ billion)

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$7.3

$13.4

$9.6

$8.9

$8.7

$4.8

2014

2015

2016

2017

Nov YTD '17

Nov YTD '18

A Mexican company completed 1 acquisition outside of Mexico with a reported value of US$238

million. November year to date volume of announced transactions was 40 with a combined

reported value of US$4,752 million, representing a decrease in value of 45% and an increase in

volume of 18% compared to the same period last year.

53

47

49

39

34

Seale & AssociatesCreative Solutions. Trusted Advice.

40

Sources: Capital IQ, Mergermarket

Deal Volume of Mexican CompaniesAcquiring Abroad

# of Transactions per month

Deal Volume and Value of Mexican CompaniesAcquiring Abroad

Annual Transactions US$ billion

SUMMARY OF MERGERS & ACQUISITIONS BY MEXICAN COMPANIES ABROAD

Mexico M&A November 2018

0

2

4

6

8

10

Dic17'

Ene18'

Feb18'

Mar18'

Abr18'

May18'

Jun18'

Jul18'

Ago18'

Sep18'

Oct18'

Nov18'

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62

26

23

23

17

14

12

Others

Real Estate

Minery

Financial

Energy

Industrial

Consumer Goods

Sources: Capital IQ, MergermarketSeale & Associates

Creative Solutions. Trusted Advice.

*

SUMMARY OF MERGERS & ACQUISITIONS BY INDUSTRY

Real Estate lead M&A activity in Mexico during 2018 with 26 announced transactions,

representing 15% of total volumen, respectively. Meanwhile, the industrial sector and

consumer godos sector lead total acquisitions of Mexican companies abroad with 10

transactions announced respectively.

Deals in Mexico by Industry

YTD October 2018 Transactions 2018: 177

Representative International Acquisitions by Mexican Companies

YTD October 2018 Transactions: 40

*Telecommunications, Oil & Gas, Industrial, IT, Infrastructure and Healthcare

10

7

3

1

5

2

110

INDUSTRIALOIL & GAS

IT

CONSUMER GOODS

HEALTH

ENERGY

REAL ESTATE

OTHERS

1FINANCIAL

Mexico M&A November 2018

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Deal Summary Target Buyer

An undisclosed buyer announced the acquisition of 52% stake of JW Marriot Hotel, Mexico City to Host Hotels & Resort, an American investment trust, for US$183 million

Grupo Evya S.A.P.I. de C.V., a Mexican oil infrastructure company, announced the acquisition of 50% stake of Dictamismo S. de R.L. de C.V., charter services in Mexico, for US$2.3 million

Chromaflo Technologies Corp., chemical and pigment products in the US, announced the acquisition of Central de Colores PlásticosS.A. de C.V., products for the plastic industry based in Mexico, for an undisclosed amount

Nucor Corporation, steel products based in the US, announced the acquisition ofCorporación Pok S.A. de C.V., for an undisclosed amount

Sources: Capital IQ, MergermarketSeale & Associates

Creative Solutions. Trusted Advice.

REPRESENTATIVE TRANSACTIONS IN MEXICO

Mexico M&A November 2018

UndisclosedBuyer

Mexico City

DictamismoS. de R.L. de C.V.

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Deal Summary Target Buyer

RLH Properties S.A.B. de C.V., a Mexican company that focuses on the acquisition of hotel assets, announced the acquisition of Hotel Villa Magna, hotel in Madrid, Spain, for US$238 million

Sources: Capital IQ, MergermarketSeale & Associates

Creative Solutions. Trusted Advice.

REPRESENTATIVE INTERNATIONAL ACQUISITIONS BY MEXICAN COMPANIES

Mexico M&A November 2018

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DEAL OF THE MONTH

RLH PROPERTIES S.A.B. DE C.V., ANNOUNCED THE ACQUISITON OF

HOTEL VILLA MAGNA

On November 26, 2018 RLH Properties S.A.B. de C.V., a Mexican

company that focuses on the acquisition of hotel assets, announced

the acquisition of Hotel Villa Magna, hotel in Madrid, Spain, for

US$238 million

BUYER

SPECIALIZED IN LUXURY HOTELS

Hotel Villa Magna was founded

on the 70´s on Paseo de la

Castellana, Madrid

The hotel has 150 rooms,

which represents a cost of

US$1.6 million per room

It is one of the largest hotel property purchase in

Spain in the last decade

BASED IN MEXICO CITY

FOUNDED IN 2013

TARGET

LOCATED IN MADRID, SPAIN

FOUNDED IN 1973

Sources: Capital IQ, MergerMarket, ExpansiónSeale & Associates

Creative Solutions. Trusted Advice.

RLH Properties has in its

portfolio the Four Seasons

Hotel in Mexico City,

Rosewood Mayakoba,

among others

150 ROOMS

Mexico M&A November 2018

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DEALS IN MEXICO IN NOVEMBER 2018

Sources: Capital IQ, MergermarketSeale & Associates

Creative Solutions. Trusted Advice.

Telecommunications IT Oil & Gas

Mining Real Estate Others Financial EnergyConsumer

GoodsIndustrial Infrastructure Healthcare

Mexico M&A November 2018

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Seale & AssociatesCreative Solutions. Trusted Advice.

Sources: Capital IQ, MergermarketSeale & Associates

Creative Solutions. Trusted Advice.

REPRESENTATIVE INTERNATIONAL ACQUISITIONS BY MEXICAN COMPANIES IN NOVEMBER 2018

Telecommunications IT Oil & Gas

Mining Real Estate Others Financial EnergyConsumer

GoodsIndustrial Infrastructure Healthcare

Mexico M&A November 2018

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REPRESENTATIVE MEXICO ENGAGEMENTS

Washington, D.C. | Mexico City | Monterrey

to

Holding company of

merged its

beverage division

with

has merged with

a business of

has partnered with

a subsidiary of

has sold

to

its sanitaryware business

and

a business unit of

has sold

Cosmocel Química

to

intelectiva®

has acquired

KFC Costa Rica

from

sold

to

sold

to

Grupo Galaz, S.A de C.V.

dealers of

has partnered with

workshop and store in

Mexico City from

Acquisition

Advisory

Services

Corporate

Finance

Advisory

Services

has formed a partnership in

the casting tools business

between

and

has acquired

has acquired

has been acquired by

has been acquired by

has acquired

has acquired

has acquired

has been acquired by

has been acquired by

merged its

beverage division

with

Acquisition

Advisory

Services

has carved out and sold

its concrete pumping

assets in Mexico

has formed a

partnership to market

and develop oil storage

and distribution in

Mexico with

Corporate

Finance

Advisory

Services

Corporate

Finance

Advisory

Services

acquired a 61% stake on

Acquisition

Advisory

Services

Corporate

Finance

Advisory

Services

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Since 1999, Seale & Associates 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

CONTACT INFORMATION

950 N. Glebe RoadSuite 950Arlington, Virginia 22203Phone: +1 (703) 294 6770

37, Moliere GranadaMexico City, 11520Phone: +52 (55) 8000 7463

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

Mexico ContactInformation

Established presence in

Monterrey , Mexico

*

*

*

*

**

**

* Multiple engagements

*

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

* *

1999

Founded

2016 2017 2018

James A. Seale

President

[email protected]

Brett M. Carmel

Senior Managing Director & Co-Founder

[email protected]

Felipe Bueno Viesca

Senior Director

[email protected]

Sergio Garcia del Bosque

Managing Director

[email protected]

Adan Sierra

Vice President

[email protected]

Carlos Hernandez

Vice President

[email protected]

Alejandro Montemayor

Associate

[email protected]

Sofia Felix

Business Development

[email protected]

Armando RiosAnalyst

[email protected]

Diego PerezcanoAnalyst

[email protected]

Miguel LealJunior Analyst

[email protected]

Diego HernandezJunior Analyst

[email protected]

Alberto LopezAnalista Junior

[email protected]

Seale & AssociatesCreative Solutions. Trusted Advice.