Grupo Lala, S.A.B. de C.V. financing of the $1.54 Billion acquisition of Vigor Alimentos, S.A.

Creel, García-Cuéllar, Aiza y Enríquez, Cravath, Swaine & Moore, Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga, Ritch, Mueller, Heather y Nicolau, Davis Polk & Wardwell and TozziniFreire advised on the transaction

Grupo Lala, S.A.B. de C.V. finalized 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.

To finance the acquisition Grupo Lala, S.A.B. de C.V. secured a $1.315 Billion bridge loan from JPMorgan Chase Bank, N.A., BBVA Bancomer, S.A. and Banco Santander (México), S.A.

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%.

In Mexico, Creel, García-Cuéllar, Aiza y Enríquez advised Grupo Lala, S.A.B. de C.V.with Giovanni Ramírez Garrido, Carlos Aiza, Víctor Hugo Gallegos Díaz, Javier Lavalle Albarrán and Paola Kiehnle Barocio.

In US, Cravath, Swaine & Moore advised Grupo Lala, S.A.B. de C.V. with David Mercado, Michael S. Goldman (Picture), Jared B. Taylor and Adam M. Sánchez.

In Brazil, Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados advised Grupo Lala, S.A.B. de C.V. with Moacir Zilbovicius, Rodrigo Figueiredo Nascimento, Andrea Bazzo Lauletta, Thiago Jabor Pinheiro, Renata Fonseca Zuccolo Giannella, Thomaz Miguel Costa Carpes Borges, Tomas Souza Queirós de Alvarenga, Luciana Lins Volkart, Karen Dagan and Rodrigo de Madureira Pará Diniz.

In Mexico, Ritch, Mueller, Heather y Nicolau advised JPMorgan Chase Bank, N.A., BBVA Bancomer, S.A. and Banco Santander (México), S.A. with Luis A. Nicolau Gutiérrez, Gabriel Robles Beistegui and Luis Miguel Posadas Yáñez.

In US, Davis Polk & Wardwell advised JPMorgan Chase Bank, N.A., BBVA Bancomer, S.A. and Banco Santander (México), S.A. with James A. Florack, William A. Curran, Jeanine P. McGuinness, Loyti Cheng, Ann Becchina, Omar Raddawi, Jenny J. Choi, Michael Comstock, Karen Li and Akansha Mishra.

In Brazil, TozziniFreire Advogados advised JPMorgan Chase Bank, N.A., BBVA Bancomer, S.A. and Banco Santander (México), S.A. with Alexei Bonamin, Shin Jae Kim, Renata Muzzi Gomes de Almeida, Felipe Tulio de Paiva, Fernanda Vilela Viana and José Augusto Dias de Castro.

 

Involved fees earner: Giovanni Ramírez Garrido – Creel, García-Cuéllar, Aiza y Enriquez SC; Carlos Aiza – Creel, García-Cuéllar, Aiza y Enriquez SC; Víctor Gallegos Diaz – Creel, García-Cuéllar, Aiza y Enriquez SC; Javier Lavalle Albarrán – Creel, García-Cuéllar, Aiza y Enriquez SC; Paola Kiehnle Barocio – Creel, García-Cuéllar, Aiza y Enriquez SC; Luis Nicolau Gutiérrez – Ritch, Mueller, Heather y Nicolau, SC; Gabriel Robles Beistegui – Ritch, Mueller, Heather y Nicolau, SC; Luis Miguel Posadas Yáñez – Ritch, Mueller, Heather y Nicolau, SC; Alexei Bonamin – Tozzini Freire ; Felipe Tulio de Paiva – Tozzini Freire ; Shin Jae Kim – Tozzini Freire ; Renata Muzzi Gomes de Almeida – Tozzini Freire ; Moacir Zilbovicius – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Rodrigo Figueiredo Nascimento – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Thomaz Miguel Costa Carpes Borges – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Tomas Souza Queirós de Alvarenga – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Luciana Lins Volkart – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Karen Dagan – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Andréa Bazzo Lauletta – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Rodrigo de Madureira Pará Diniz – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Thiago Jabor Pinheiro – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Renata Fonseca Zuccolo Giannella – Mattos Filho Veiga Filho Marrey Jr & Quiroga; David Mercado – Cravath Swaine & Moore; Michael Goldman – Cravath Swaine & Moore; James Florack – Davis Polk & Wardwell; Omar Raddawi – Davis Polk & Wardwell; Jenny Choi – Davis Polk & Wardwell; Michael Comstock – Davis Polk & Wardwell; William Curran – Davis Polk & Wardwell; Karen Li – Davis Polk & Wardwell; Loyti Cheng – Davis Polk & Wardwell; Ann Becchina – Davis Polk & Wardwell; Akansha Mishra – Davis Polk & Wardwell; Jeanine McGuinness – Davis Polk & Wardwell;

Law Firms: Creel, García-Cuéllar, Aiza y Enriquez SC; Ritch, Mueller, Heather y Nicolau, SC; Tozzini Freire ; Mattos Filho Veiga Filho Marrey Jr & Quiroga; Cravath Swaine & Moore; Davis Polk & Wardwell;

Clients: JPMorgan Chase & Co.; BBVA Bancomer; Grupo Lala SAB de CV; Banco Santander Mexico SA;

 

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Author: Ambrogio Visconti.