BSF Closes Deal for Client Alfa Partners to Sell Shares in Walmart Centroamérica
BSF represented Alfa Partners (one of the largest minority shareholders of Walmart Centroamérica) in the sale of Walmart Centroamérica to Wal-Mart de México, S.A.B. de C.V. (Walmex). Other selling parties included Wal-Mart Stores, Inc. and other local shareholders.
The purchase was paid for in a combination of approximately US$110 million in cash and 604 million shares of Walmex stock and will include an earnout provision providing for additional payments in the future based on the performance of Walmart Centroamérica.
"The deal makes a lot of sense for all the parties," said Robert Leung, a partner in BSF's Corporate Group, to Latin Lawyer magazine. He continued, "...The Central American stores occupy a similar market to Mexico, so they will be able to exploit synergies. At the same time it simplifies Wal-Mart Stores' management structure."
Walmart Centroamérica operates 519 stores in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica, with annual sales of US$3.3 billion and over 30,000 employees. Walmex President and CEO, Eduardo Solorzano noted in the Walmex press release, "I am very pleased to close this year with a historical transaction. The acquisition of Walmart Centroamérica converts Walmart de Mexico into an international company with 1,929 units in six countries generating more than US$25 billion dollars in sales. It also gives Walmex shareholders access to additional growth opportunities in 5 countries, that adds to the existing opportunities in our country." The deal was announced on December 7, 2009 and closed on February 15, 2010.
In addition to Leung, the BSF team included partner Keith Blum and associates Neena Reddy, Lauren Salvati and James Orthwein.
Related Lawyers: Keith J. Blum, , ,
Related Practice: Corporate