PC Capital – Investment Banking México

RECENT TRANSACTIONS

BACKGROUND

  • Grupo GMI is the leading manufacturer and provider of modular construction solutions in Mexico and Latin America serving the aeronautical, education, housing, retail and industrial sectors

PC CAPITAL´S ROLE

  • PC Capital acted as exclusive financial advisor of GMI
  • Build along with the company’s shareholders a strategic 5 year business plan for the company´s expansion plan
  • Determined the investment needs to execute the business plan
  • Conducted roadshow, evaluated potential partners and negotiated the terms and conditions of the transaction

RESULTS

  • GMI received the required capital to execute on its expansion strategy, build a robust commercial structure and further consolidate its position as the industry leader
  • The investment is representative of Acon´s strategy in Latin America, where it seeks to partner with established management teams and invest through highly structured transactions in middle-market businesses that are at inflection points

BACKGROUND

  • First Cash Financial Services (Nasdaq: FCFS) is the leading international operator of retail pawn stores

PC CAPITAL´S ROLE

  • PC Capital originated the investment opportunity and acted as exclusive financial advisor to First Cash in the acquisition of Maxi Prenda, which operates 211 full-service pawn stores in Mexico, Guatemala and El Salvador under the brand names
  • Negotiated the terms and conditions of the transaction

RESULTS

  • First Cash acquired 100% of Maxi Prenda
  • This acquisition is First Cash’s largest and most significant acquisition in Latin America to date
  • With this transaction,  First Cash increases its number of LatAm stores by more than 30%, gains presence in the only three Mexican states where it did not previously have operations, and expands its business into two new countries

BACKGROUND

  • First Cash Financial Services (Nasdaq: FCFS) is the leading international operator of retail pawn stores

PC CAPITAL´S ROLE

  • PC Capital originated the investment opportunity and acted as exclusive financial advisor to First Cash in the acquisition of Maxi Prenda, which operates 211 full-service pawn stores in Mexico, Guatemala and El Salvador under the brand names
  • Negotiated the terms and conditions of the transaction

RESULTS

  • First Cash acquired 100% of Maxi Prenda
  • This acquisition is First Cash’s largest and most significant acquisition in Latin America to date
  • With this transaction,  First Cash increases its number of LatAm stores by more than 30%, gains presence in the only three Mexican states where it did not previously have operations, and expands its business into two new countries

BACKGROUND

  • First Cash Financial Services (Nasdaq: FCFS) is the leading international operator of retail pawn stores

PC CAPITAL´S ROLE

  • PC Capital originated the investment opportunity and acted as exclusive financial advisor to First Cash in the acquisition of Maxi Prenda, which operates 211 full-service pawn stores in Mexico, Guatemala and El Salvador under the brand names
  • Negotiated the terms and conditions of the transaction

RESULTS

  • First Cash acquired 100% of Maxi Prenda
  • This acquisition is First Cash’s largest and most significant acquisition in Latin America to date
  • With this transaction,  First Cash increases its number of LatAm stores by more than 30%, gains presence in the only three Mexican states where it did not previously have operations, and expands its business into two new countries

BACKGROUND

  • Pitney Bowes, Inc. (NYSE:PBI), a global technology company that offers innovative products and solutions that enable commerce and communication
  • As part of its new global strategy, the Company is looking to convert to a dealer model

PC CAPITAL´S ROLE

  • PC Capital acted as exclusive financial advisor to Pitney Bowes in the sale of 100% of its Mexican subsidiary to Appliance Technologies, a Mexican company focused on business analytics and big data
  • Negotiated the terms and conditions of the transaction

RESULTS

  • The transaction will allow PBI to continue expanding its presence in Mexico with the support of a leading local partner in the industry

BACKGROUND

  • Deja is a diversified Mexican family offices with investments in Real Estate, Private Equity and the Pharmaceutical Industry

PC CAPITAL´S ROLE

  • PC Capital advised Deja on the acquisition of the interest of AWA Holdings in “Office Fund I”, a private equity fund managed by Tresalia Real Estate  to develop high end office buildings in Mexico City
  • Originated the investment opportunity
  • Negotiate the financial structure and terms and conditions to close the transaction

RESULTS

  • Deja was looking to diversify its real estate exposure in Mexico
  • Deja acquired 100% of the interest of AWA Holding, another Mexican family office,  in Tresalia’s “Office Fund I”
  • Tresalia is one of the largest family offices in Mexico and managers of real estate developments.  Tresalia Real Estate focuses in developing high end office buildings in Mexico
  • With the transaction AWA Holding outperform its expected return on this investment
  • The acquisition is one of the first Private Equity Secondary Market transactions in Mexico

BACKGROUND

  • Te Creemos (“TC”) is a specialized financial institution that provides comprehensive  financial services, including credit, insurance and savings products, to low income individuals and to small and micro enterprises

PC CAPITAL´S ROLE

  • PC Capital advised TC on the acquisition of Finclusion, a large regional microfinance institution with presence in 13 states of Mexico
  • Acted as exclusive financial advisor of TC
  • Obtained an equity commitment from Mexico Development Fund I, a Mexican Private Equity fund, to finance 50% of the acquisition

RESULTS

  • Te Creemos acquired the 100% of the outstanding shares of Finclusión
  • Te Creemos’s credit portfolio grew by more than 40%, and became  the second largest independent microfinance company in Mexico
  • Te Creemos was able to fulfill its short and medium term inorganic growth objectives

BACKGROUND

  • Vtufin is the pioneer and leading provider of working capital lines of credit to direct  sales micro entrepreneurs.
  • The Company it has in excess of 43 thousand cardholders nationwide and generates monthly interest rates and fees yielding returns in excess of 70%.

PC CAPITAL´S ROLE

  • Acted as exclusive financial advisor of Vtufin
  • Conducted a competitive sell process with potential strategic buyers for Vtufin
  • Negotiated a transaction by which Tarjeta Amiga assumed the operation of Vicky Form´s private label credit program and acquired Vtufin´s accounts

RESULTS

  • Vtufin divested 100% of its Vicky Form private label credit business and ensured continuity to Vicky Form´s credit program
  • By virtue of the transaction Vicky Form gained access to Tarjeta Amiga’s national coverage and secured an exclusivity for its core line of business within Tarjeta Amiga’s network

BACKGROUND

  • Global leader in the marine management industry needed to obtain financing to pay their commitments to Textron, who granted a credit for the purchase of Marina Cabo San Lucas, the largest marina in Mexico

PC CAPITAL´S ROLE

  • Perform a competitive process with commercial banks, multilateral funds and private equity funds in order to obtain the necessary financing
  • Valuation to provide an opinion of value for the closing with Banorte

RESULTS

  • Getting multiple letter of intents in order to grant funding to IGY
  • Asset valuation Marina Cabo San Lucas for the closing with Banorte

BACKGROUND

  • A subsidiary of the leading English language school in Mexico was looking for a capital issuance for its business development, construction of two new schools, equipment and working capital

PC CAPITAL´S ROLE

  • Support business operators in the design and planning of the needed organizational structure to support business growth
  • Structuring of a financing plan to support business growth

RESULTS

  • Expansion plan development for multiple openings of English schools
  • Structuring of an exit strategy to allow operating partners to continue with the business growth plan
  • Successful exit with high returns on the investment

BACKGROUND

  • Leading company in Mexico’s IT critical mission service industry desired to explore the in the small and medium size market through acquisitions of hosting services and clud computing companies in Mexico and LATAM
  • Company was looking to buy the biggest player in Mexico to create an initial service platform

PC CAPITAL´S ROLE

  • Analyzed the acquisition, and the value to our client and its shareholders
  • Evaluated the company and its growth with the strategic and operational advantage of being a potential subsidiary of our client
  • Quantification of operational and strategic synergies derived from the transaction
  • Negotiated the acquisition structure, and the terms and conditions of the transaction

RESULTS

  • Acquisition of 100% of the shares of Internetworks
  • Creation of a cloud computing platform to attack the hosting market of SMEs
  • Expansion of KIO services to attack businesses of all sizes with customized solutions

BACKGROUND

  • The shareholders of Vicky Form, leader in the lingerie market in Mexico, wanted to explore the possibility of a sale or joint venture of the company
  • PC Capital was hired to conduct a competitive process

PC CAPITAL´S ROLE

  • Building along with the company’s shareholders a business plan for the company, including an aggressive expansion into the retail market and the consolidation in the catalog sales market
  • Determine the needs of working capital and investments to execute the business plan
  • Conduct an international “road show” with potential strategic and financial partners with experience in the industry
  • Negotiated the structure of the strategic alliance and the terms and conditions of the transaction

RESULTS

  • Vicky Form shareholders sold 51% of their participation in the company to Triumph
  • Creation of the largest association in the country for the manufacture and sale of lingerie as well as the commercialization of Triumph  brands in Mexico
  • Sell of a majority position at attractive multiples for the seller and buyer
  • Creation of an export platform for Vicky Form

BACKGROUND

  • Leading company in Mexico’s IT critical mission service industry desired to explore the in the small and medium size market through acquisitions of hosting services and clud computing companies in Mexico and LATAM
  • KIO was looking to buy the biggest player in Mexico to increase its installed customer base

PC CAPITAL´S ROLE

  • Analyzed the acquisition, and the value to our client and its shareholders
  • Evaluated the company and its growth with the strategic and operational advantage of being a KIO company
  • Quantification of operational and strategic synergies derived from the transaction
  • Negotiated the acquisition structure, and the terms and conditions of the transaction

RESULTS

  • Acquisition of 100% of the shares of InterPlanet
  • Creation of a cloud computing platform to attack the hosting market of SMEs
  • Expansion of KIO services to attack businesses of all sizes with customized solutions

BACKGROUND

  • Mexico’s leader in precision cast and machined parts was seeking to finance a project to serve as Chrysler exclusive supplier of cam shafts
  • To fulfill its commitment with Chrysler, the company neededto expand its production facility to more than double in size

PC CAPITAL´S ROLE

  • Secure the necessary resources for the new project and determine the optimal financing structure
  • Value the operations of Arbomex taking into account their market leadership and growth potential to create an ideal partnership
  • Design the financing structure and terms and conditions of the deal including leasing, senior debt and mezzanine financing
  • Conduct a competitive process to secure the resources needed to fund the project

RESULTS

  • Funding secured to implement 100% of the project with Chrysler and have the resources to continue expanding
  • Partnership with one of the most important financial institutions worldwide
  • Immediate access to resources to continue implementing new projects, buy their minority shareholders and continue long term expansion

BACKGROUND

  • Mexico’s leading company in the industry of mini warehouses with aggressive expansion plans and the desire to gain the support of a financial partner with the capacity to finance growth with debt

PC CAPITAL´S ROLE

  • Secure the resources needed to finance the purchase of land of one of its existing warehouse and construction of a new property
  • Conducted a competitive process to secure funding for the project
  • Negotiate the financing structure and terms and conditions of the operation
  • Perform closing for immediate implementation

RESULTS

  • The successful execution of credit agreements and the completion of the project
  • Creating a funding mechanism that allowed the release of funds to finance two warehouses and establish a credit history with a first class financial institution with the capacity to finance the growth of the company’s long-term

BACKGROUND

  • Leading company in Mexico’s IT critical mission service industry desired to explore the in the small and medium size market through acquisitions of hosting services and clud computing companies in Mexico and LATAM
  • KIO was looking to buy the biggest player in Mexico to increase its installed customer base

PC CAPITAL´S ROLE

  • Analyzed the acquisition, and the value to our client and its shareholders
  • Evaluated the company and its growth with the strategic and operational advantage of being a KIO company
  • Performed the financial due diligence of the company
  • Negotiated the acquisition structure, and the terms and conditions of the transaction

RESULTS

  • Acquisition of 100% of the shares of TocalWeb

BACKGROUND

  • Leading company in Mexico’s IT critical mission service industry desired to explore the Colombian market and to expand its internationals operations by acquiring more than 50% of the shares of a company

PC CAPITAL´S ROLE

  • Analyzed the acquisition, and the value to our client and its shareholders
  • Evaluated the company and its growth with the strategic and operational advantage of being a KIO company
  • Performed the financial due diligence of the company
  • Negotiated the acquisition structure, and the terms and conditions of the transaction

RESULTS

  • Acquisition of 60% of the shares of  SEM Soluciones Empresariales
  • Expand the presence of KIO to Colombia

BACKGROUND

  • Leading  company in the steel industry with the need to finance the construction of a new US$ 400 million plant and complete a secondary minority sale of its business

PC CAPITAL´S ROLE

  • Determined the capital requirements of the expansion project as well as the optimum debt to capital ratio and returns for the investor
  • Performed a valuation analysis of the Company under different costs of capital and growth scenarios in order to determine an appropriate price range for the minority sale of the Company
  • Structured and negotiated the terms and conditions for the transaction with strategic investors

RESULTS

  • Successful negotiation with strategic investors for completion of a combined transaction of over US $600 million
  • Increase of more than 30% in the original valuation proposal submitted by investors
  • Maintained control of current operations through controlling shareholders position

BACKGROUND

  • Leading company in Mexico’s IT critical mission service industry desired to start its international expansion
  • After performing a market research and potential partner examination it was determined that Panama was the best country to start the international expansion

PC CAPITAL´S ROLE

  • Analyzed the transaction, and the value to our client and its shareholders
  • Performed the market research of LATM countries
  • Analyzed potential business partners
  • Negotiated the strategic alliance structure, and the terms and conditions of the operation
  • Made the business plan for the new company

RESULTS

  • Creation of KIO Panama
  • First step in international expansion

BACKGROUND

  • Mexican market leader in self-storage facilities with aggressive expansion plans looking for an experienced partner that could share its international knowledge of the industry, name recognition and best practices

PC CAPITAL´S ROLE

  • Determined the value of U-Storage’s existing portfolio as well as the appropriate cost of capital for the industry in Mexico
  • Presented a valuation analysis to the company and the potential partner that served as a basis for negotiating a capitalization for U-Storage’s expansion plan
  • Conducted valuation analysis and presented transaction recommendations to shareholders

 

RESULTS

  • Creation of the country’s largest self storage player in partnership with the second most important self-storage developer in the world
  • Acquisition of a minority position in U-Storage under attractive conditions for the investors and the company
  • Acquisition of best practices
  • Creation of an expansion plan with an investment of more than US$ 400MM for the development of 50 new facilities

 

BACKGROUND

  • Leading company in Mexico’s IT critical mission service industry desired to enter the document management industry
  • Informática El Corte Inglés has experience in the document management industry in Spain but has limited knowledge of the Mexican market

PC CAPITAL´S ROLE

  • Analyzed the joint venture, and the value to our client and its shareholders
  • Negotiated the strategic alliance structure, and the terms and conditions of the operation

RESULTS

  • The creation of HIKU, a document management company in Mexico
  • Increase the offered solutions in KIO portfolio

BACKGROUND

  • Project for a new type of assets in Mexico
  • Project unable to secure financing from local banks or Sofol for more than 2 years
  • Shareholders with limited capitalization and without the ability to provide guarantees for loans

PC CAPITAL´S ROLE

  • Determined the optimal capital structure and the payment capacity of the project based on a series of construction alternatives
  • Road Show held with major financial institutions and real state investment funds

RESULTS

  • Project design and capital structure which allowed the construction of the project in two phases to minimize the sales risk
  • Capital contribution from a private equity firm for the asset and its managing company
  • 100% of the required investment was raised without any additional capital commitments from the developer

BACKGROUND

  • Leading Hospital in Monterrey looking for a fairness opinion to help them determine the value of their existing business and explore strategic growth opportunities
  • Company was also looking for guidance in determining the value of an important expansion project positioned to accelerate the company’s growth, diversify its customer base, and geographic footprint through the construction of a new hospital

PC CAPITAL´S ROLE

  • Worked with the Hospital’s senior management team to develop a 5 year strategic plan and build consensus around the company’s financial objectives
  • Helped management develop a ramp up plan for the company’s new hospital and build a detailed plan for the project’s completion, financing and start up of operations

RESULTS

  • Delivered the company with a valuation of the business by business unit including the new project
  • Provided recommendations regarding financing alternatives, business expansion plan and growth management processes

BACKGROUND

  • Leading company in Mexico’s IT critical mission service industry with a proposal from a worldwide leading storage solutions company required a financial advisor to help it study the added value from the proposed transaction and if convenient to structure and formalize a strategic alliance

PC CAPITAL´S ROLE

  • Analyzed the transaction, and the value to our client and its shareholders
  • Evaluated KIO’s operations including its leadership in the market and potential growth
  • Negotiated the strategic alliance structure, and the terms and conditions of the operation
  • Closed the operation for its immediate implementation

RESULTS

  • Created a unique strategic alliance in the Mexican market that will give KIO and EMC the capacity to widen even more their leadership in the Mexican market
  • Executed an agreement that recognizes the Company’s market value and its growth potential

BACKGROUND

  • The leading prefabricated builder of warehouse storage facilities for retail and other applications in Mexico
  • Funds were required to build a distribution center using the company’s technology. The technology was unknown by the market and was hard to evaluate by the banks
  • Cash flows and amortizations based on non-recurring business and the introduction of new products, such as storage solutions

PC CAPITAL´S ROLE

  • Determined the cash requirements of the project and the capital structure
  • Conducted a Road Show with the leading financial institutions in Mexico
  • Conducted a competitive process to obtain funding for the project

RESULTS

  • Successful execution of credit agreements and the project
  • Funding was negotiated without the need to give personal guarantees from shareholders

BACKGROUND

  • Decrease of more than 50% of revenues in less than 4 years
  • Lack of working capital to deliver client’s purchases
  • Not paying more than US$ 60 million liabilities

PC CAPITAL´S ROLE

  • Divest assets to heal the bank’s debt
  • Evaluate recapitalization alternatives to pay other liebilities
  • Obtain working capital to continue normal operation and restore the company’s growth

 

RESULTS

  • Obtained offers of US$ 100 million for certain divested assets
  • Negotiated with creditors, company and investors to divest and restructure the bank debts
  • Elaborated a strategy to continue creating value for existent businesses through an additional capitalization
  • Sold non-strategic assets

 

BACKGROUND

  • Company leader in its industry with the need to settle a liability and a share purchase option (PUT) with the International Finance Corporation (IFC)
  • The PUT option with the IFC contemplated a valuation above the market value of the company

PC CAPITAL´S ROLE

  • Valuation and analysis of strategic growth options and presenting appropriate value ranges for the exercise of the financial obligations of the company with the IFC
  • Restructuring the payment price of the call option

RESULTS

  • Settlement of credit and the option of the company to an appropriate value to yield a rate of return appropriate for the investor and a price payable to the company
  • Release bearing liabilities that allowed the company to boost growth plans and a strategic partnership with a new partner

BACKGROUND

  • Leader in the food distribution sector. In order to expand their business, the company promoted the divestment of one of the partners without interrupting the operations of the business while maintaining the option of selling part of the founders share of the business to an strategic buyer

PC CAPITAL´S ROLE

  • Advise the company selling the shares of JP Morgan Partners, a private equity fund with the need to sell its stake in the company due to the maturity of the company
  • Develop a financial model of the company and the necessary documents for the road show including a five year business plan

RESULTS

  • Support team for the “buy side” during the Due Dilligence to help the buyer understand the estimated growth shown in the business plan
  • Sell the company to a private investor who serves the dual function of satisfying the selling price of private equity, and providing the confidence and profile of the original shareholders

BACKGROUND

  • Company with a highly profitable and proven operations model in its 6 business units, and a need to raise equity to finance a nationwide expansion plan

PC CAPITAL´S ROLE

  • Obtained resources to fund  the company’s growth plan
  • Conducted negotiations to minimize founding shareholders’ dilution, protect minority rights and achieve appropriate returns for the investor

RESULTS

  • Obtained 7 capitalization offers which in aggregate represented more than US $140 MM in equity commitments
  • Partnership with a proven private equity investor to>
  • Complete the 5 year 26 units expansion plan
  • Pursue an IPO as an exit alternative

BACKGROUND

  • A consolidation opportunity for a subsidiary of one of Mexico’s largest industrial companies in an industry characterized by:
  • Low profitability
  • Price wars
  • Decrease in demand for its products
PC CAPITAL´S ROLE
  • Negotiation of an acquisition that positioned our client as the undisputed market leader with a 50% increase in sales and EBITDA as a result of economies of scale and operating synergies
RESULTS
  • Successful negotiation of an attractive acquisition price that ensured the company a superior rate of return on its investment
  • Consolidation of over 75% of the particleboard market in Mexico in certain products
  • Diversified revenues through the introduction of export revenues
  • Secured financing for 50% of the purchase price

BACKGROUND

  • American company with an alliance with Cydsa for a project development of underground storage of natural gas. The project also had the objective to form a strategic alliance with an international partner with resources and expertise in energy infrastructure.

PC CAPITAL´S ROLE

  • Determine the investment requirements for the project and the most favorable capital structure and returns for the companies involved
  • Valulation of Saltec International under different scenarios to determine an adecuate price range  for the sale of a minority share of the company’s equity
  • Structuring and negotiating the terms and conditions necessary for the alliance through a convertible debt mechanism with negotiating options related to the progress of the project

RESULTS

  • Obtaining the necessary working capital for the technical development of the most important project in its sector with a budget of over $ 250 MM
  • Selling a minoritary part of Saltec’s equity under attractive conditions for both parties
  • Obtaining  the credentials for the Saltec-Cydsa alliance by getting a storage permit from the Energy Regulatory Commission needed for the negotiation of the storage contract with PEMEX


BACKGROUND

  • Hype Holdings wanted to maximize the potential of its real estate property investment and diversify its revenue base with new business models
  • The fitness Mexican market was at a time of high growth, especially in the niche of “Cross-Fit”, where one of the partners of Hype possessed a thorough knowledge of the industry

PC CAPITAL´S ROLE

  • PC Capital introduced and helped the Company in evaluating various business models to maximize the investment potential
  • Together with the Company and its partners, PC Capital developed an investment and operating plan for a gym business dedicated to cross-fit
  • Negotiation of an agreement that includes operational responsibilities, investment needs and the distribution of the economic benefits equally among the partners.

RESULTS

  • Expansion of the investment in the partnership to start the “Cross-Fit“ business
  • Association with Wodbox for the management and administration of a “Cross-Fit“ center
  • Expansion plan development for multiple “Cross-Fit“ centers openings in Mexico City


BACKGROUND

  • Hype Holdings wanted to maximize the potential of its real state property investment and develop additional business to increase the use of their real estate assets

PC CAPITAL´S ROLE

  • PC Capital introduced and helped the Company to evaluate various real state business models to maximize the investment potential
  • Together with the Company and its partners, PC Capital evaluated the new business proposals, the development of a financial plan, and the partnership with the most attractive proposal
  • Negotiation of an agreement that includes operational responsibilities, investment needs and the distribution of the economic benefits equally among the partners

RESULTS

  • Capitalization of the existing investment and expansion of the investment for the adaptation of the property for the new business
  • Association with IVO Business Centers for handling and managing a business center and virtual office


BACKGROUND

  • A company dedicated to the design and implementation of energy solutions in Mexico was seeking capital to diversify its business into other niche markets including energy generation and management of lighting service contracts

PC CAPITAL´S ROLE

  • Structuring of a financing scheme required for the business plan
  • Support in Administrative Services through PC Capital’s back office
  • Support in customers management, planning and design of the organizational structure needed to support business growth

RESULTS

  • Structuring of debt and equity placements to minimize dilution of the operating partner and provide the necessary working capital for business growth
  • Participation of PC Capital with 40% of the capital of the Company
  • Business diversification and obtained the first contracts for management services

BACKGROUND

  • Store operator who was selected by Nike as a partner for the launch and operation of clothing and footwear Nike Sportswear stores
  • At the same time, the operator was looking for a partner to support him with the necessary capital for the opening of the first Nike Sportswear store in Mexico and further institutionalization for its business.

PC CAPITAL´S ROLE

  • Support to the operator to form a group of investors to fund the business plan, including working capital and starting Capex
  • Establishment of a board of directors and corporate governance to manage the implementation of the business plan
  • Guidance in negotiations and corporate requirements for signing the credit and operation contract with Nike

RESULTS

  • Integration of a consortium of experienced partners in the retail sector to fund the company with the necessary resources for the construction and operation of the business
  • Establishment of a SAPI with direct investment by PC Capital Partners in exchange for 60% of the shares representing the capital stock of the company
  • Opening of the first monobrand Nike Sportswear Flagship in Mexico
  • Support in administration, finance and treasury functions through PC Capital’s back office