Desc S.A. de C.V. Announces Negotiations to Sell Its Poultry and Animal Feed Business.MEXICO CITY--(BUSINESS WIRE)--Nov. 5, 1999-- Desc S.A. de C.V. (NYSE NYSE See: New York Stock Exchange :DES) (BMV BMV Bolsa Mexicana de Valores BMV Bureau of Motor Vehicles BMV Bundesministerium für Verkehr (German: Federal Ministry of Transport) BMV Below Market Value BMV Brome Mosaic Virus BMV Bedside Medication Verification :DESC) announced Friday that it has entered into a definitive agreement with Industrias Bachoco S.A. de C.V. (NYSE:IBA IBA abbr. International Bar Association IBA (in Britain) Independent Broadcasting Authority IBA n abbr (Brit) (= Independent Broadcasting Authority ) (BMV:BACHOCO UBL (Universal Business Language) A format for exchanging data from one XML business language to another. Based on ebXML Core Components, UBL is designed to provide a common language that acts as an intermediate vocabulary so that one XML vocabulary can interoperate with ), to sell 100% of the shares of Grupo Campi, S.A. de C.V., its poultry and animal feed business. Bachoco submitted the most attractive offer during a competitive sale process. The total amount paid for Grupo Campi is US$155 million, which included approximately US$27 million in net debt. Proceeds from the sale will be mainly used to pay down debt related to the purchase of Authentic Specialty Foods, Inc. held in June 1998. Grupo Campi's 1998 sales were US$208 million, with an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of US$37 million. Grupo Campi's 7% national market share makes it the fourth largest poultry producer in Mexico. In addition, Grupo Campi is one of Mexico's principal producers of animal feed. Its operations are mainly situated in the Yucatan Peninsula, Southeastern states and Central Mexico. Wth this transaction DESC reinforces its strategy to focus on branded products in its food sector, with a strong market share in Mexico and the Southwestern United States. This transaction will be subject to approvals by the corresponding Government authorities as required by law. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion