News

Alsea, SAB de C.V. (BMV: ALSEA *) the leading operator of Quick Service
Restaurants, Coffee Shops, and Casual Dining establishments in Latin America and Spain announces that it has signed an agreement with General Atlantic, a leading global growth equity firm, for the sale of its total minority interest in Grupo Axo S.A. de C.V., which was acquired in June 2013. In addition, Alsea signed a contract with Grupo Axo to acquire Alsea's minority interest in the subsidiaries of Grupo Axo in Chile.
 
The amount of both transactions exceeds 1.6 billion pesos. The closing of the transaction is subject to obtaining regulatory authorizations and other closing conditions. The proceeds from these transactions will be used primarily for debt reduction and other growth projects.
 
Renzo Casillo, Chief Executive Officer of Alsea commented: “This decision will allow us to strengthen our strategy and continue to efficiently execute our growth plans in the core industry of the company, we will focus completely on the operation of restaurants in the different geographies where we have presence and we will continue exploring new opportunities within the industry.”
 
Alberto Torrado, Chairman of Alsea’s Board of Directors mentioned: “This investment was very profitable for Alsea, both on the financial side and on the business insight by having been a part, during these four years, of a project with a huge potential such as Grupo Axo, whom we thank for having shared with us their experience and knowledge in the retail industry.”
 
Grupo Axo is one of the largest and fastest growing retailers in Mexico, operating over 500 retail points of sale and more than 3,100 wholesale points of sale in department stores. The Company owns the exclusive rights to commercialize more than 20 leading international brands in Mexico under licensing agreements and joint ventures. Grupo Axo owns and operate Promoda, the leading off-price retailer in Mexico operating with 140 stores.