August 2023
If you wish to subscribe to this newsletter click here
  1. Public Company Transactions in Mexico
  2. Private Company Transactions in Mexico
  3. Private Equity Transactions
  4. Venture Capital Transactions
  5. Asset Purchases
  6. Other International News
  7. Analysis of Mergers and Acquisitions in Mexico
  8. Analysis of Venture Capital Transactions in Mexico
  9. Subscription
Highlights of the month
This month we highlight FEMSA's announcement that Envoy Solutions, its U.S.-based subsidiary that distributes specialty products, will merge with BradyIFS. Following the transaction, FEMSA will have a 37% stake in the new company and will receive USD $1.7 billion in cash. This deal is part of FEMSA’s previously announced initiative to divest non-core assets.
1.- Public Company Transactions in Mexico
Mexican multinational beverage and retail company FEMSA announced that Envoy Solutions, its U.S.-based distribution company for facility supplies, packaging solutions, foodservice disposables, and specialty products, will merge with its counterpart BradyIFS. Following the transaction, FEMSA will own a 37% stake in the new company and will receive US$1.7 billion in cash.
INVEX Infraestructura, subsidiary of the Mexican Financial Services Group INVEX Controladora, agreed to sell for USD $50 million a 25.7% stake in Jaguar Solar Holdings, a Mexican operator of photovoltaic solar plants with a 216 MW capacity.
Mexico's largest transportation company Grupo Traxion acquired for USD $5.1 million a 90% stake in the Mexican company V-MODAL, which specializes in railroad logistics coordination services.
Mexican Financial Services Group Grupo Financiero Inbursa acquired an 80% stake in Cetelem Mexico, a non-bank entity specialized in auto loans, from French bank BNP Paribas Personal Finance.
Mexican conglomerate Grupo Kuo, through its automotive industry manufacturer subsidiary Tremec, acquired the U.S.-based Electric GT, a supplier of conversion systems for transforming internal combustion engine vehicles into battery-electric vehicles. 
Mexican multinational building materials company Cemex announced the acquisition of two quarries in Spain from Germany's Heidelberg Materials.   
2.- Private Company Transactions in Mexico
Tenaris, a Luxembourg-based supplier of pipes and services to the energy industry, acquired Bredero Shaw International BV, a subsidiary of Canadian pipe coating company Mattr, for USD $166 million. The transaction includes two plants in Veracruz. 
Mexican neobank albo acquired the Mexican fintech delt.ai, a corporate credit and spend management platform, for USD $20 million.
Neubox, a Mexican web hosting and domain registration company, acquired its Mexican counterpart Hospedando.mx. With this acquisition, their client portfolio will grow 50% and they will manage close to 250,000 domains.
United Arab Emirates-based Beyond One, a digital services provider, acquired MVNO Virgin Mobile Latin America, a mobile virtual network operator with operations in Mexico, Colombia, and Chile. 
U.S.-based plastic injection molding company Mission Plastics acquired Andercraft de Mexico, a plastic injection molding plant.
SionBrands, a joint venture formed by the Israeli-based healing material manufacturers Sion Medical and Mexico's Degasa, reached a definitive agreement to acquire U.S.-based Richmond Dental & Medical, a manufacturer of single-use dental products and dispensers, from Barnhardt Manufacturing.
GPA Global, a U.S-based packaging solutions company, acquired Mexico's Foli, a company specialized in sustainable packaging and display solutions. 
Babel Sistemas de Informacion, a Spanish technology consulting firm, through its financial sponsor Aurica Capital, acquired Ironbit Mexico, developer of a mobile application provider of out-of-the-box solutions and custom development, for an undisclosed amount.
Mexican insurer Sekura, through its financial sponsors Australis Partners and International Finance Corporation, acquired Mexican Alternativas en Riesgos (aer) Agente de Seguros y de Fianzas, an operator of insurance brokerage services, for an undisclosed amount.
Japanese conglomerate Marubeni acquired a 31% stake in Radial Llantas, a retail distributor of automotive tires and vehicle spare parts, bringing its total stake to 80%. 
Navigator Capital and White Park Capital, investment funds from Germany and Ireland, respectively, acquired the Italian deli meats brand Fiorucci from Mexico's Sigma Alimentos of Grupo Alfa. The transaction included two production plants in Italy, its subsidiaries in Italy and Germany, and the Fiorucci brand in Europe.
3.- Private Equity Transactions
AINDA Energia & Infraestructura, a Mexican Private Equity Firm, acquired an additional 4.4% stake in the CNH-R01-L02-A2/2015 oil contract from Hokchi Energy, bringing its total stake to 8%. 
4.- Venture Capital Transactions
Wonder Brands, a Mexican e-commerce brand aggregator, raised a USD $15 million investment round led by NAZCA (Mexico) and IDB Invest, with the participation of CoVenture, SilverCircle, Korify Capital, Infinitas Capital and GBM (Mexico). 
Momento, a Mexican company operating an automobile insurance and related services platform, raised USD $10.5 million in an investment round led by HSCM Ventures and Foundation Capital, with the participation of Global Founders Capital, Gilgamesh Ventures, Clocktower Technology Ventures, Picus Capital, Wollef (Mexico), BoxGroup, and Y Combinator.
Metabase Q, a Mexican cybersecurity services provider, raised USD $7.5 million in Series A1 and A2 rounds led by SYN Ventures.
Leadsales, a Mexican startup developer of a CRM enabling businesses to centralize WhatsApp, Facebook, and Instagram messages in a single platform, secured USD $3.7 million in an investment round led by ULU Ventures and BluePointe Ventures, with the participation of Carabela, Latitud, and StartX.
Belvo, a Mexican company managing an open banking platform in Latin America, invested in Bixo, the holding entity of Moneda Colombia, a computer systems developer.
Autolab, a Colombian company specializing in workshop management for cars, closed a USD $4.1 million investment round led by Vertical Venture Partners and Haven Ventures, with the participation of Interplay Venture Capital, Bullpen Capital, Proeza Ventures (Mexico), and Polymath Ventures.
Rintin, a Mexican company developing a wholesale digital marketplace platform connecting small independent retailers with emerging brands, raised an undisclosed amount from the Colombian fund LatinLeap.
Maqui, a Mexican developer of a supply chain management platform for the fashion industry, received a USD $1.5 million investment round led by Marathon Ventures, in which Integra Groupe, Kuiper Capital, nido Ventures (Mexico) and NOA Capital (Mexico) also participated.
Digitt, a Mexican developer of fintech products and services to help individuals pay off credit card debt, raised an undisclosed amount from New Stack Ventures.
Paradero Todos Santos, an operator of luxury hotels and experience-based resorts in Mexico, raised an undisclosed amount of investment from Derive Ventures.
5.- Asset Purchases
Terrafina, a Mexican REIT, acquired two portfolios of industrial buildings in Baja California and the State of Mexico from the Private Equity Fund Artha Capital for USD $200 million.
Fibra Shop, a Mexican REIT, sold Plaza Kukulcan shopping center for USD $50.3 million.
The U.S.-based Real Estate developer American Leisure Properties and the Mexican companies Alimentos GND and Inmobiliaria Danmada II, acquired Promociones Turisticas AV, the controlling and operating entity of Marina Costa Baja, in La Paz, Baja California Sur, a marina with capacity for 250 boats and entrance to the Sea of Cortez. 
6.- Other International News
U.S.-based Private Equity Firm Roark Capital acquired the fast-food chain Subway for approximately USD $9.6 billion.
Tapestry, owner of the Coach and Kate Spade fashion brands, acquired Capri Holdings, owner of brands such as Michael Kors, Jimmy Choo, and Versace, for USD $8.5 billion.
Campbell Soup, a U.S.-based packaged food manufacturer, acquired Sovos, the maker of Rao's sauces, for USD $2.3 billion. Sellers include the Private Equity Firm Advent International.
Private Equity Firm KKR agreed to buy book publisher Simon & Schuster from Paramount Global for USD $1.6 billion.
Private Equity Firm Bain Capital acquired the Brazilian steakhouse chain Fogo de Chao from Rhone Capital for USD $1.1 billion.
Danish pharmaceutical company Novo Nordisk acquired Canada's Inversago Pharma, a developer of targeted therapies for people with obesity, diabetes, and metabolic disorders, for USD $1.1 billion.
7.- Analysis of Mergers and Acquisitions in Mexico
Volume and Value of Transactions 2022 - 2023
During August 2023, 21 M&A transactions were registered in Mexico, 2 fewer than the 23 reported in the same month of the previous year. The amount disclosed went from USD $403 million to USD $2 billion, a 402.2% increase. On the other hand, the volume of cumulative transactions through August of this year was 2.5% lower than in the same period of the previous year, going from 157 to 153 operations. However, the total accumulated value increased by 79.3%, going from USD $8.4 billion to USD $15.1 billion.
Transactions in Mexico according to Sector
During the eighth month of 2023, the most active sector in terms of mergers and acquisitions was Industry / Manufacturing & Engineering with 7 transactions, equivalent to 33% of the monthly number of deals. In terms of cumulative volume, companies in the Industry/Manufacturing & Engineering sector also dominated with 37 transactions, equivalent to 24% of the YTD total. 
Transactions in Mexico according to the Origin of the Buyer and the Seller
In August 2023, in terms of number of deals, operations of foreign entities with Mexican counterparts predominated, with 8 transactions, representing 38% of total. The same trend is observed in terms of the amount disclosed, which amounted to USD $1.8 billion, accounting for 86% of total. 
For the year to date, foreign operations with Mexican counterparts stood out with 52 transactions, representing 34% total. The same is true in terms of the amount disclosed, which totaled USD$7.9 billion, 52% of total. 
8.- Analysis of Venture Capital Transactions in Mexico
During August 2023, 10 Venture Capital transactions were registered in Mexico, 1 less than those observed a year earlier; in terms of the cumulative number of transactions up to August, a 30.6% decrease was recorded (75 vs. 108). The published value of investments in startups in the country reached a total of USD $38 million in August, a 40.8% decrease vs. the amount observed in August of the previous year. In terms of the cumulative amount, it is down for 71.1%, going from USD $1.3 billion to USD $387 million.
This is a free electronic newsletter courtesy of RIóN, sent with the purpose of providing you with useful information. Please feel free to share or forward this newsletter to you colleagues, friends and/or associates. 

If you have any questions or comments, please send them to [email protected]. 

The editor is not responsible for the damages caused by the use of the information included. The information included in this newsletter was gathered from public sources (América Economía, Bloomberg, El Economista, El Financiero, El Excelsior, El Universal, Sentido Comun, Reforma, El Norte, The Wall Street Journal, Mergermarket, Business Week, New York Times, Expansión y CNN / Expansion, DealWatch, LatinLawyer, among others) and direct sources of RIoN M&A and it is subject to the accuracy and truthfulness of them. 
© 2004–2023 by RION M&A S.C. All rights reserved.
The use of RIóN® and RION M&A® information on websites is prohibited. All rights reserved.