|MEXICO CITY, Oct. 26, 2017 /PRNewswire/ — Grupo Lala, S.A.B. de C.V. (BMV “LALA”) is pleased to announce that it has completed the acquisition of 99.9% of the shares of the Brazilian dairy company Vigor Alimentos, S.A. (“Vigor”), and the 50% of the shares of Itambé Alimentos, S.A. (“Itambé”), also a Brazilian dairy company, for an implied value of R$ 5,025 million.
Following the relevant event published on September 21st, the Cooperativa Central dos Produtores Rurais de Minas Gerais Ltda (“CCPR”) is expected to exercise its right of first refusal to acquire 50% of the remaining Itambé shares, belonging to Vigor, so the net implied value of the Transaction would be R$ 4,325 million.
The Transaction was financed with a bridge loan for $25,229 million pesos with the banks JP Morgan, BBVA Bancomer and Santander; the refinancing of the bridge loan will be through long-term debt and possible bond issue.
Founded in 1917, Vigor has a consolidated infrastructure of over 3,900 employees, 3 milk collection centers, 9 production facilities and 19 distribution centers reaching 47,000 points of sale, with a strong presence in the states of Sao Paulo, Minas Gerais and Rio de Janeiro.
Vigor’s estimated revenues for 2017 are R$ 2,407 million in Net Sales and an EBITDA of R$ 200 million, with a margin of 8.3%.