M&A Newsletter — August 2022

Mexico's Urbvan, a developer of an intelligent collective-transportation platform designed to offer a strategic route network and executive transport based in Mexico City, was acquired by Swvl (NAS: SWVL) for USD $82.00 million.

Pitarrilla Project, a silver, lead and zinc mine based in Durango, Mexico owned by SSR Mining (TSE: SSRM), was acquired by Endeavour Silver (NYS: EXK) for USD $127.00 million. The consideration consists of USD $35.00 million in cash and USD $35.00 million in Endeavour shares, as well as net smelter return royalties of 1.25%.

Semillas Ceres, a hybrid corn seed producer based in Sinaloa, Mexico, was acquired by Syngenta (a subsidiary of China National Chemical) for an undisclosed amount.

Polímeros Especiales, a manufacturer of emulsion polymers for the architectural, textile and construction markets based in Cuautitlán Izcalli, Mexico, reached a definitive agreement to be acquired by Arkema (PAR: AKE) for an undisclosed amount.

Grupo Gondi, a manufacturer of recycled paper and cardboard packaging for companies in Mexico based in Mexico City, reached a definitive agreement to be acquired by WestRock (NYS: WRK) for USD $970.00 million.

A 53% stake in Germany's ProStein, an aggregates manufacturer and distributor based in Saxony, was acquired by Cemex (MEX: CEMEXCPO) for an undisclosed amount. With this acquisition, Cemex expects to double its aggregates sales in Germany, as well as supply multiple urban centers in Poland and the Czech Republic.

A 51% stake in Spanish football club Real Oviedo was acquired by Grupo Pachuca, operator of a Mexican soccer club, for an undisclosed amount. Following this transaction, Grupo Carso (MEX: GCARSO) retains 20% and other shareholders hold the remaining 29%.

U.S.-based Somos Cred Capital, a company specializing in the design of credit risk models based in Delaware, was acquired by Mexico's Klar for an undisclosed amount.

Switzerland's Valora Holding AG, operator of a convenience-store and food-service chain based in Muttenz, reached an agreement to be acquired by Mexico's Femsa (MEX: FEMSAUBD) for USD $1,150.00 million.

U.S.-based Choice Hotels International (NYS:CHH), operator of a hotel chain based in Maryland, reached an agreement to acquire Radisson Hotel Group Americas for USD $675.00 million. With this transaction, Choice incorporates into its portfolio seven El Cid Resorts hotels based in Sinaloa and Quintana Roo, Mexico.

A 73% stake in Spanish football club Real Sporting Gijón was acquired by Mexico's Orlegi Sports (a business unit of Grupo Orlegi) for approximately EUR €43.00 million.

A 65% stake in Neoris (a subsidiary of Cemex (MEX: CEMEX)), a global provider of technology-consulting and digital-transformation services, was acquired by private-equity fund Advent for an undisclosed amount.

MovingLake, operator of a data-intelligence platform designed to provide real-time and event-driven data connectors, based in Mexico City, joined Y Combinator as part of its Summer 2022 cohort and received USD $500,000.00 in financing in the form of SAFE notes.

Agovest, developer of an online financial-education platform designed to provide financial education to women, based in Mexico City, joined Techstars as part of its Boulder Fintech Class 2022 and received financing of USD $20,000.00.

DEUNA, a Fintech startup specializing in e-commerce solutions based in San Pedro Garza García, Mexico, closed a financing round of USD $30.00 million led by Activant Capital. Valor Capital Group, Abstract Ventures, Acrew Capital and Upload Ventures, among others, also participated in this round.

Mexico's Kapital, developer of an all-in-one banking platform designed to provide treasury visibility and control, closed a financing round of USD $30.00 million led by Tenacity Venture Capital. Telesoft, Broom Ventures, Soma Capital, Pioneer Fund, FoundersX Ventures and Arash Ferdowsi also participated in this round.

Mexico City-based Mattilda, a developer of financial collections-management software designed to help clients resolve billing issues, closed a funding round for an undisclosed amount led by Emerge Education, QED Investors and DILA Capital. GSV Ventures and Picus Capital also participated in this round.

Mexico's Treggo, a developer of an on-demand delivery application designed to accelerate the transportation of goods within cities, closed a funding round of USD $2.80 million led by Kube VC, First Check Ventures and Newtown Partners. Verve Capital, LatinLeap, Bluewatch Ventures and four other angel investors also participated in this round.

Mexico's Octapus, a provider of hybrid cloud computing and cybersecurity services designed to support companies in their digital transformation and compliance with local data regulations, closed a funding round for an undisclosed amount with Aken Capital.

Mexico City-based Aklara, a developer of an online auction platform designed to offer equitable market access to all participants, closed a funding round of USD $3.00 million with undisclosed investors.

Mexico City-based Morgana, a developer of a digital mortgage platform designed to simplify lending processes, closed a seed funding round of MXN $4.00 million led by Speedinvest and Cometa. Nido Ventures, Ángel Ventures México and other undisclosed investors also participated in this round.

Mexico's PROSPERiA, a developer of artificial-intelligence-based technology designed to assist in the early detection and treatment of chronic diseases, closed a seed funding round of USD $2.00 million with Cardo Health.

Colombia's Hunty, a developer of a human-resources technology platform designed to help people find employment, based in Bogotá, closed a funding round of USD $2.00 million with Cometa.

Germany's Onomotion, a developer of an electric vehicle designed to deliver goods and cargo efficiently, based in Berlin, closed an undisclosed funding round with Proeza Ventures.

Mexico's Stori, a Mexico City-based Fintech startup offering secured credit cards, closed a USD $150.00 million funding round led by BAI Capital, GIC and GGV Capital, reaching a valuation of USD $1,200.00 million and attaining unicorn status. Lightspeed Venture Partners, General Catalyst, Vision Plus Capital, Goodwater Capital and Tresalia Capital, among others, also participated in this round.

Denmark's COBOD, a company specializing in 3D-printing solutions for the construction industry, closed a funding round with Cemex Ventures (the venture capital and open innovation unit of Cemex (MEX: CEMEX)) for an undisclosed amount.

Mexico's Megacable (MEX: MEGACPO), a Guadalajara-based provider of cable television, telephony and internet services, made investments of MXN $800.00 million to begin operations in San Luis Potosí and Aguascalientes.

U.S.-based Goldman Sachs (NYS: GS) made an investment of USD $233.00 million in Mercado Libre (MEX: MELI) with the aim of expanding the company's capacity to extend credit to individuals and small businesses in Brazil and Mexico.

Certain aluminum-coil coating and painting assets owned by Almexa Aluminio (a subsidiary of Grupo Vasconia) were acquired by U.S.-based Vorteq Coil Finishers, through its financial sponsor Shadowbriar Capital Partners via an LBO, for an undisclosed amount.

Calomex, a Mexico City-based insurance brokerage services provider, was acquired by BMS Group, through its financial sponsors British Columbia Investment Management and Preservation Capital Partners via an LBO, for an undisclosed amount.

Arrenda, a developer of a real-estate platform designed to help landlords manage tenants and properties at an affordable price, closed a seed funding round of USD $26.50 million in a combination of debt and equity led by Fasanara Capital. Wharton Fintech, Kube VC, Lightspeed Venture Partners, Toehold Ventures and PRMM Inmobiliaria, among others, also participated in this round.

Grupo Lamosa (MEX: LAMOSA) closed two debt financing rounds totaling USD $197.00 million, of which USD $115.00 million corresponds to a seven-year bank loan and USD $82.00 million to a 12-year private placement. The proceeds will be used to prepay debt contracted in 2021 for the acquisition of Grupo Roca's tile business.

Kansas City Southern de México (KCSM) reached an agreement with Mexico's Secretaría de Infraestructura, Comunicaciones y Transportes (SICT) to finance a project on the Celaya-NBA railway bypass for MXN $4,000.00 million, in exchange for a 10-year extension of KCSM's exclusivity rights.

Canada's TC Energy (TSE: TRP) reached an agreement with the Comisión Federal de Electricidad (CFE) for the construction of a natural-gas pipeline based in Veracruz, Mexico, for USD $5,000.00 million. This pipeline will connect the ports of Tuxpan and Coatzacoalcos.

Almacenadora Afirme (MEX: AFIRALM) carried out the issuance of short-term market securities (certificados bursátiles de corto plazo) for MXN $2,795.96 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa Base.

ION Financiera (MEX: ION) carried out the issuance of short-term market securities (certificados bursátiles de corto plazo) for MXN $373.25 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa Base.

Financiera Bepensa (MEX: FINBE) completed the placement of short-term market securities (certificados bursátiles) in the amount of MXN $350.00 million on the Bolsa Mexicana de Valores (BMV) through Actinver Casa de Bolsa and Casa de Bolsa Banorte.

GM Financial de México (MEX: GMFIN) completed the placement of short-term market securities (certificados bursátiles) in the amount of MXN $2,367.97 million on the Bolsa Mexicana de Valores (BMV) through Scotia Inverlat Casa de Bolsa and Casa de Bolsa Banorte, and long-term market securities in the amount of MXN $950.00 million through Casa de Bolsa BBVA México and Scotia Inverlat Casa de Bolsa.

Paccar Financial México (MEX: PCARFM) completed the placement of short-term market securities (certificados bursátiles) in the amount of MXN $700.00 million on the Bolsa Mexicana de Valores (BMV) through Scotia Inverlat Casa de Bolsa.

Toyota Financial Services México (MEX: TOYOTA) completed the placement of short-term market securities (certificados bursátiles) in the amount of MXN $250.00 million and long-term market securities in the amount of MXN $2,000.00 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa BBVA México, Scotia Inverlat Casa de Bolsa and Casa de Bolsa Santander.

Volkswagen Leasing (MEX: VWLEASE) completed the placement of short-term market securities (certificados bursátiles) in the amount of MXN $2,333.54 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa BBVA México.

Factoraje Afirme (MEX: AFIRFAC) completed the placement of short-term market securities (certificados bursátiles) in the amount of MXN $100.00 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa Base.

Banco Santander México (MEX: BSMX) completed the placement of bank market securities (certificados bursátiles bancarios) in the amount of MXN $5,000.00 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa Santander.

Arrendadora Afirme (MEX: AFIRMAR) completed the placement of short-term market securities (certificados bursátiles) in the amount of MXN $313.14 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa Base.

Mercader Financial (MEX: MERCFIN) carried out the placement of short-term market securities (certificados bursátiles) in the amount of MXN $150.00 million on the Bolsa Mexicana de Valores (BMV) through Intercam Casa de Bolsa, Casa de Bolsa Banorte and Scotia Inverlat Casa de Bolsa.

Start Banregio (MEX: START) carried out the placement of short-term market securities (certificados bursátiles) in the amount of MXN $645.00 million on the Bolsa Mexicana de Valores (BMV) through Actinver Casa de Bolsa.

Cetelem (MEX: CETELEM) carried out the placement of short-term market securities (certificados bursátiles) in the amount of MXN $900.00 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa BBVA México.

Megacable Holdings (MEX: MEGA) carried out the placement of long-term market securities (certificados bursátiles) in the amount of MSN $7,000.00 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa BBVA México, Casa de Bolsa Santander and Scotia Inverlat Casa de Bolsa.

Grupo Minsa (MEX: MINSA) carried out the placement of short-term market securities (certificados bursátiles) in the amount of MXN $53.70 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa Banorte and Actinver Casa de Bolsa.

Factoring Corporativo (MEX: FACTOR) carried out the placement of short-term market securities (certificados bursátiles) in the amount of MXN $643.80 million on the Bolsa Mexicana de Valores (BMV) through Vector Casa de Bolsa.

Arrendadora Actinver (MEX: ARREACT) carried out the placement of short-term market securities (certificados bursátiles) in the amount of MXN $145.00 million on the Bolsa Mexicana de Valores (BMV) through Actinver Casa de Bolsa.

Navistar Financial (MEX: NAVISTS) carried out the placement of short-term market securities (certificados bursátiles) in the amount of MXN $200.00 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa BBVA México and Scotia Inverlat Casa de Bolsa.

Crediclub (MEX: CREDICL) carried out the placement of short-term market securities (certificados bursátiles de corto plazo) in the amount of MXN $100.00 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa Base, Casa de Bolsa Banorte and Actinver Casa de Bolsa.

Bienes Programados (MEX: HIR) carried out the placement of long-term market securities (certificados bursátiles de largo plazo) in the amount of MXN $463.535 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa BBVA México and Casa de Bolsa Santander.

Unifin Financiera (MEX: UNIFIN) carried out the placement of short-term market securities (certificados bursátiles de corto plazo) in the amount of MXN $200.00 million on the Bolsa Mexicana de Valores (BMV) through Casa de Bolsa Base and Scotia Inverlat Casa de Bolsa.

Sistema de Crédito Automotriz (MEX: SICREAC) carried out the placement of short-term market securities (certificados bursátiles de corto plazo) in the amount of MXN $100.00 million on the Bolsa Mexicana de Valores (BMV) through Actinver Casa de Bolsa.

Kimberly-Clark de México (MEX: KIMBER) carried out the placement of long-term market securities (certificados bursátiles de largo plazo) in the amount of MXN $10,000.00 million on the Bolsa Mexicana de Valores (BMV) through Citibanamex Casa de Bolsa and Casa de Bolsa BBVA México.

Mexarrend (BIVA: MEXAMX) carried out the placement of short-term market securities (certificados bursátiles de corto plazo) in the amount of MXN $96.00 million on the Bolsa Institucional de Valores (BIVA) through Vector Casa de Bolsa.

PGIM Real Estate MVP Inmuebles (BIVA: PLA3CK) completed the closing of Fondo México Industrial V ("PruMex V") through the placement of non-amortizable real-estate investment trust certificates (certificados bursátiles fiduciarios inmobiliarios, CBFIs) under a capital-call mechanism in the amount of MXN $1,450.00 million on the Bolsa Institucional de Valores (BIVA) through Casa de Bolsa Banorte and Goldman Sachs México, Casa de Bolsa.

Grupo Vasconia (BIVA: VASCONI) carried out the placement of short-term market securities (certificados bursátiles de corto plazo) in the amount of MXN $512.31 million on the Bolsa Institucional de Valores (BIVA) through the following broker-dealers: Actinver, BBVA México, Grupo Bursátil Mexicano, HSBC, Intercam, Punto, Santander and Vector.

Exitus Credit (BIVA: ECREDCB) carried out the placement of long-term fiduciary securities certificates for MXN $270.00 million on the Bolsa Institucional de Valores (BIVA) through HSBC Casa de Bolsa, Intercam Casa de Bolsa and Casa de Bolsa Banorte.

Grupo Elektra (BIVA: ELEKTRA) carried out the placement of long-term securities certificates for MXN $5,000.00 million on the Bolsa Institucional de Valores (BIVA) through Actinver Casa de Bolsa and Punto Casa de Bolsa.

Mercado Pago (an online payments platform owned by Mercado Libre (MEX: MELI)) announced the deepening of its alliance with Western Union with the aim of streamlining and reducing the cost of remittance-reception processes. Users of Mercado Pago will now be able to receive up to USD $4,999.00 with no commission charges, at any hour and on any day, instantly.

Mexico's Sonora Grill Group, a restaurant group specializing in grilling and meats based in Mexico City, announced the opening of its first restaurant with a Mediterranean concept under the CERVO brand, based in Mérida Yucatán, with an investment of MXN $65.00 million.

GS1 México, an organization responsible for issuing barcodes for products in Mexico, launched Desabasto Cero, a platform that uses Artificial Intelligence and Machine Learning to enable retail companies and manufacturers to detect supply-chain disruptions that prevent timely shelf stocking.

Cinemex, operator of a cinema chain based in Mexico City, carried out the opening of its second Cinemex Market gastronomic complex, based in Interlomas Estado de México, with an investment of MXN $147.00 million.

U.S.-based Wyndham Hotels & Resorts (NYS: WH), operator of a hotel chain with a presence in 95 countries, signed an alliance with Spain's Palladium Hotel Group, adding to its portfolio 14 all-inclusive hotels under the Registry Collection brand and one luxury property under the Trademark Collection brand, located in Mexico, the Dominican Republic, Jamaica and Brazil.

Mexico's Alsea (MEX: ALSEA), a multinational franchise-restaurant operator based in Mexico City, signed an alliance with Chile's NotCo, a leading food-technology startup, with the aim of offering plant-based products.

U.S.-based Fatburger & Buffalo's Express (a subsidiary of FAT Brands (NAS: FAT)), a Beverly Hills-based burger chain, signed a partnership with restaurant group Red Rombo for the opening of 50 locations in Mexico over the next five years. The first unit will be based in Mexico City with an investment of more than MXN $9.00 million.

Mexico's Afirme, operator of a Monterrey-based bank with more than 80 branches nationwide, entered into a partnership with Volante Technologies, a cloud-based payment-services provider, with the aim of automating SWIFT cross-border payments and offering a broader range of international payment methods.