17 Jun Grupo KUO signs agreement for the sale of its stake in the Carbon Black business
Mexico City, June 17th, 2013 – Grupo KUO, S.A.B. de C.V. (BMV: KUO), hereinafter Grupo KUO, informs that it has signed a sale agreement for its entire shareholding in its Carbon Black business, (Nhumo, S.A. de C.V.), which accounts for 59.95% of the total shares, to Cabot International Capital Corporation, its partner in this joint venture.
The transaction will be carried out in two stages: the first stage, expected to be concluded in October 2013, includes the sale of 45.67% of the total shares to Cabot for US $80 million, the conversion of Grupo KUO´s remaining equity into a 5 year redeemable preferred shares with a 6% annual dividend and the payment of a substantial dividend to shareholders from Nhumo´s excess cash.
In the second phase, Grupo KUO will receive US $25 million through the redemption of the preferred shares.
Nhumo sales in LTM ending March 31st amounted to US $188 million and generated an EBITDA of US$24 million.
This operation is subject to the approval of the Mexican Antitrust Commission (Comisión Federal de Competencia) and other applicable governmental authorizations.
“This divestiture is a good example of a win-win transaction, which will allow us to focus on the expansion of the core businesses in our portfolio and on the other hand Cabot will be able to create greater value for Nhumo bringing benefits for employees, clients and for Mexico”, said Juan Marco Gutiérrez Wanless, Grupo KUO´s CEO.
With this transaction, Grupo KUO reinforces its commitment to focus on businesses in which it owns the technology and look forward to develop new projects. As a result of this agreement, and starting in the second quarter 2013, figures of the Nhumo JV will be presented as assets held for sale. Before this transaction, results consolidation was done at 100%.
Atlas Advisors acted as exclusive financial advisor to Grupo KUO in 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.