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

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1 MERGERS & ACQUISITIONS MEXICO JULY 2018 MONTHLY ISSUE

2 SUMMARY OF MERGERS & ACQUISITIONS IN MEXICO In July 2018, 15 transactions were announced in Mexico, a decrease of 17% over last month. Also, total reported deal value was US$665 million. Total deal volume and deal value as of July 2018 were 132 and US$5,602 million respectively, representing a deal value increase of 33% over the same period last year Deal Volume in Mexico Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul # of Transactions per Month $ $ $ $ July YTD. '17 July YTD. '18 $4.2 $ Deal Volume and Value in Mexico Annual Transactions (US$ billion)

3 MEXICAN COMPANIES ACQUIRING ABROAD Mexican companies completed 4 acquisitions outside of Mexico with a reported value of US$51 million. July year to date volume of announced transactions was 26 with a combined reported value of US$2,847 million Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul July YTD '17 July YTD '18 $7.3 $13.4 $9.6 $8.9 $6.9 $ Deal Volume of Mexican Companies Acquiring Abroad # of Transactions per month Deal Volume and Value of Mexican Companies Acquiring Abroad Annual Transactions US$ billion

4 SUMMARY OF MERGERS & ACQUISITIONS BY INDUSTRY Real Estate leads M&A activity in Mexico during 2018 with 17 announced transactions, representing 13% of total volume. Meanwhile, the industrial sector leads total acquisitions of Mexican companies abroad with 9 transactions announced. Industrial IT 9 9 Deals in Mexico by Industry YTD July 2018 Transactions 2018: 132 Energy Financial Minery Real Estate Others Telecommunications, Oil & Gas, Industrial, Infrastructure and Healthcare REAL ESTATE 3 1 HEALTH CARE IT 1 6 CONSUMER GOODS OTHERS 2 ENERGY 1 OIL & GAS 3 9 INDUSTRIAL Representative International Acquisitions by Mexican Companies YTD July 2018 Transactions: 26

5 REPRESENTATIVE TRANSACTIONS IN MEXICO Deal Summary Target Buyer Perenco Oil & Gas International Ltd., an oil company based in the United Kingdom, acquired the 49% stake of Petrofac s operations in Mexico, a British oil company, for US$274 million Company s Operations in Mexico Mexichem, S.A.B. de C.V., Mexican petroquimical company, announced the acquisition of the remaining 44.09% stake of Petroquímica Mexicana de Vinilo S.A. de C.V., a joint company between Mexichem and Pemex, for US$179 million Petroquímica Mexicana de Vinilo S.A. de C.V. Ituran Location and Control Ltd., a location service company based in Israel, announced the acquisition of 81.3% stake of Road Track Holding S.L., a Mexican location service company, for US$92 million FIBRA Prologis, owns and operates class A facilities in Mexico, announced the acquisition of class A facilities in Guadalajara for US$14 million Class A Facilities in Guadalajara

6 REPRESENTATIVE INTERNATIONAL ACQUISITIONS BY MEXICAN COMPANIES Deal Summary Target Buyer Hasta Capital, a real estate firm based in Mexico, announced the acquisiton of The Residences at City Center, a 291-unit community in Virginia, for US$52 million Wal-Mart de México y Centroamérica, a chain of supermarkets based in Mexico, announced the acquisition of Perimercados S.A., Saretto and Super Compro, supermarkets in Costa Rica, for an undisclosed amount

7 DEAL OF THE MONTH Wal-Mart de México y Centroamérica, announced the acquisition of Perimercados S.A., Saretto and Super Compro, with an undisclosed amount Perimercados, Saretto and Super Compro used to belong to Grupo Empresarial de Supermercados (GESSA) BUYER WAL-MART DE MÉXICO Y CENTROAMÉRICA, ANNOUNCED THE ACQUISITION OF PERIMERCADOS S.A., SARETTO AND SUPER COMPRO TARGET Wal-Mart de México y Centroamérica strengthens its presence in Costa Rica with the acquisition of the 52 stores With the acquisition, Wal-Mart de México y Centroamérica now has 301 units in Costa Rica The stores will become Walmart, Mas x menos, Maxi Palí or Palí brands EMERGED IN 2010 FOUNDED IN ,156 OUTLETS 52 OUTLETS +237,000 EMPLOYEES +1,300 EMPLOYEES Formed by the merger among Walmart México and Walmart Centroamérica Sources: Capital IQ, El Financiero, Expansión

8 DEALS IN MEXICO IN JULY 2018 Mining Real Estate Others Financial Energy Consumer Goods Industrial Infrastructure Healthcare Telecommunications IT Oil & Gas

9 REPRESENTATIVE INTERNATIONAL ACQUISITIONS BY MEXICAN Creative COMPANIES Solutions. Trusted Advice. IN JULY 2018 Mining Real Estate Others Financial Energy Consumer Goods Industrial Infrastructure Healthcare Telecommunications IT Oil & Gas

10 REPRESENTATIVE MEXICO ENGAGEMENTS intelectiva has merged with merged its beverage division with merged its beverage division with KFC Costa Rica from a business of has partnered with a subsidiary of has partnered with Acquisition Acquisition has been acquired by Corporate Finance has formed a partnership in the casting tools business between and sold to has carved out and sold its concrete pumping assets in Mexico to has formed a partnership to market and develop oil storage and distribution in Mexico with sold to Corporate Finance has sold Cosmocel Química Holding company of has been acquired by to a business unit of Corporate Finance Corporate Finance dealers of acquired a 61% stake on has sold has been acquired by Grupo Galaz, S.A de C.V. has been acquired by workshop and store in Mexico City from Acquisition its sanitaryware business and to Washington, D.C. Mexico City Monterrey

11 Since 1999, 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 Mexico Contact Information James A. Seale President jseale@sealeassociates.com Brett M. Carmel Senior Managing Director bcarmel@sealeassociates.com Felipe Bueno Viesca Managing Director fbueno@sealeassociates.com Sergio Garcia del Bosque Managing Director sgarcia@sealeassociates.com Adan Sierra Vice President asierra@sealeassociates.com Carlos Hernandez Vice President chernandez@sealeassociates.com 1999 Founded Established presence in Monterrey, Mexico Alejandro Montemayor Associate amontemayor@sealeassociates.com Sofia Felix Business Development sfelix@sealeassociates.com Multiple engagements CONTACT INFORMATION Andres Cardenas Analyst acardenas@sealeassociates.com 950 N. Glebe Road Suite 950 Arlington, Virginia Phone: +1 (703) , Moliere Granada Mexico City, Phone: +52 (55) Armando Rios Analyst arios@sealeassociates.com Miguel Leal Junior Analyst mleal@sealeassociates.com Diego Hernandez Junior Analyst dhernandez@sealeassociates.com 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