Mexico: First leveraged buyout

Author: | Published: 1 Dec 2006
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Mexico city recently witnessed the first ever leveraged buyout in the country, the $200 million joint acquisition of Controladora Milano

The first 10 months of 2006 has seen a boom in Mexico's M&A activity. Company-to-company deals have almost doubled from 65 totaling $5.14 billion to 123 deals totaling $9.77 billion. The rise on the private equity side does not contain such dramatic figures, but the combined deal value has risen from $130 million (from eight deals) to $229 million (from seven deals).

One of the most impressive deals in 2006 so far involved a couple of top tier firms. In May, Mijares Angoitia Cortés y Fuentes advised Capital International Research and Galicia y Robles represented Advent International in their $200 million joint acquisition of Controladora Milano with FMO and BBVA. Tier two firm Kuri Breña Sánchez Ugarte Corcuera y Aznar scored a coup by advising the target in this deal. The buyout was funded with $110 million in equity and $90 million in debt and was the first-ever leveraged buyout transaction in Mexico.

The Mexican market has also been buoyed by the transactions of Carlos Slim in Latin America and the Caribbean. Through ownership of America Móvil and Telmex, he bought three of Verizon's telecommunication operations.

Recommended firms
Tier 1
Creel García-Cuéllar y Müggenburg
Galicia y Robles
Mijares Angoitia Cortés y Fuentes
White & Case
Tier 2
Jáuregui Navarrete y Nader
Kuri Breña Sánchez Ugarte Corcuera y Aznar
Martínez Algaba Estrella de Haro y Galván-Duque
Ritch Mueller
Santamarina y Steta
Tier 3
Baker & McKenzie
Basham Ringe y Correa
Goodrich Riquelme y Asociados
Holland & Knight – Gallastegui y Lozano
Von Wobeser y Sierra SC

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