TORREON, Mexico — Grupo LALA, S.A.B. de C.V. ("Grupo LALA" or "LALA") (BMV: LALA), announces that its Board of Directors, with the favorable opinion of its Audit and Corporate Practices Committee, has agreed to propose to LALA's shareholders the acquisition of up to 100% of the shares of Vigor Alimentos, S.A. ("Vigor"), a Brazilian dairy company, and directly or indirectly, 100% of the shares of Itambé Alimentos, S.A. ("Itambé"), also a Brazilian dairy company, for an implied value of R$5,725 million (the "Transaction"). Considering a consolidated 2017 estimated EBITDA of R$329 million, the multiple of the Transaction is 17.4x.
As a first step towards completing the Transaction, today LALA, FB Participações and JBS S.A. entered into a share purchase agreement pursuant to which LALA will acquire, subject to its terms and conditions, 91.99% of the shares of Vigor.
In addition, as part of the Transaction, LALA may acquire from Arla Foods International A/S ("Arla") an additional 8% of Vigor's shares, increasing LALA's participation to 99.99%.
Finally, the Transaction contemplates LALA's acquisition, directly or indirectly, of up to 100% of the shares of Itambé, subject to the exercise of certain rights by Vigor's partner, Cooperativa Central dos Produtores Rurais de Minas Gerais Ltda. under their existing shareholders' agreement.
Additional Information of the Transaction
- The Transaction is subject to certain common conditions, including the approval by Grupo Lala's shareholders meeting, governmental authorizations, shareholder agreements and other inherent contractual conditions.
- Substantial provisions for a successful integration and mitigation of risks have been included in the share purchase agreement.
- Financing for the Transaction will include a bridge loan, followed by a combination of long-term debt and additional equity of approximately US$550 million, of which an estimated US$315 million will be committed by LALA's current shareholders.
Please click on the following link for a PDF file containing the full text of the press release: LALA TO ACQUIRE VIGOR ALIMENTOS, S.A.
Please click on the following link for a PDF file containing the full text of the press release in Spanish: LALA, PRÓXIMA A ADQUIRIR VIGOR ALIMENTOS, S.A.
About LALA
Grupo LALA, (BMV: LALA), Mexican company focused on healthy and nutritious foods, has a history of more than 65 years of experience in the production, innovation and marketing of milk and dairy products under the highest quality standards. The Company operates 22 production plants and 160 distribution centers in Mexico, United States and Central America, supported by more than 34,000 employees. Grupo LALA's fleet of approximately 7,000 vehicles distributes its more than 600 products to nearly 500,000 points of sale. LALA's portfolio is led by its two main brands: LALA® and Nutri Leche®.
For more information, visit: www.grupolala.com
Grupo LALA trades on the Mexican Stock Exchange under the ticker symbol "LALA"
Source: Grupo LALA