28 Mar Grupo KUO announces agreement with Mexichem to sell phosphates business
Excerpt of press release by Grupo KUO
Grupo KUO, S.A.B. de C.V. (Grupo KUO) (BMV:KUO) today announced that it has reached an agreement with Mexichem, S.A.B. de C.V. (Mexichem), for the sale of Quimir, S.A. de C.V. (Quimir), a company in the chemical sector specialized in the phosphates business.
Quimir is a chemical company focused on the production and sale of industrial and food-grade phosphates, among others, which are used mainly for detergent manufacturing. The annual sales of this business were approximately US $160 million in 2007.
Proceeds from this transaction will be used by Grupo KUO primarily for investments to support the growth of current businesses and new projects, as well as to continue lowering the company’s leverage, thereby further strengthening the financial structure of the Group.
This divestment is part of Grupo KUO’s strategy of managing a dynamic portfolio of businesses to continue generating value for its shareholders. The closing of the transaction is subject to the approval of the corresponding governmental entities and other authorizations.
Grupo KUO is one of the most important industrial groups in Mexico, with approximately US $1,900 million in annual sales and 17,000 employees, and through its subsidiaries is a leading participant in the Chemicals, Consumer and Auto Parts businesses.
Atlas Advisors acted as financial advisor to Grupo KUOin connection with this transaction.
Atlas Advisors is the marketing name for Atlas Advisors, LLC and Atlas Strategic Advisors, LLC. Atlas Strategic Advisors, LLC provides financial advisory services in connection with mergers, acquisitions and other similar transactions. Atlas Strategic Advisors, LLC is a wholly owned subsidiary of Atlas Advisors, LLC and a member of the FINRA.
None of the information contained in this release constitutes a recommendation, solicitation or offer by Atlas Strategic Advisors, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.