ICA Acquires 51% of Peru's San Martin, Building Presence in Construction Mining Services
Empresas ICA, S.A.B. de C.V.
30.05.2012 15:00
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MEXICO CITY, 2012-05-30 15:00 CEST (GLOBE NEWSWIRE) --
Empresas ICA, S.A.B. de C.V. (BMV:ICA) (NYSE:ICA), the largest engineering,
procurement, construction and infrastructure operations company in Mexico,
announced the signing of an agreement to acquire a 51% shareholding in San
Martin Contratistas Generales S.A. ('San Martin'), Peru's leading company
dedicated principally to construction in the mining sector.
San Martin, founded in 1960, is Peru's largest construction services company
for open pit and site preparation works for the mining industry. During the
last three years San Martin's revenues increased at an average annual rate of
35%, reaching approximately US$ 240 million in 2011. San Martin's backlog as of
December 31, 2011 totaled US$ 440 million, which includes contracts that will
be executed during the next five years.
The purchase price was based on an earn out formula that takes into account
various factors, including San Martin's EBITDA during 2011 to 2014, and is
payable over a five year period. The accumulated purchase price could range
from the initial payment of US$ 18 million, payable upon closing, to a maximum
of US$ 123 million, with a likely range between US$ 80 million and US$ 100
million based on current reasonable projections of the company's performance.
This strategic transaction reflects ICA's international expansion initiative
and interest in forming partnerships with domestic groups of proven experience
and recognized prestige in select Latin American countries. Peru has grown at
an average rate of 6.4% over the past 10 years, with sound macroeconomic
management and a proven legal framework for foreign investment and
infrastructure development.
Julian Siucho, the Chairman of San Martin, noted: 'By joining forces with ICA,
we will be able to take San Martin to the next level of growth and
profitability. The scope of ICA's operations and financial strength will make
it possible for us to undertake larger and more complex projects than at
present. In addition, the partnership will enable us to take our mining
construction expertise to other countries in the region.'
Alonso Quintana, ICA's Chief Operating Officer, added: 'ICA believes that the
acquisition of a majority holding in San Martin creates value for ICA and ICA's
shareholders. San Martin is a proven leader with a superior management team and
shared corporate values. The company's expertise opens up a new range of
business opportunities for ICA in civil construction. We have operated in Peru
since 1996, and our agreement with San Martin is an important step forward in
ICA's international expansion initiative. We look forward to a long and
productive partnership with San Martin.'
BBVA acted as a sole financial advisor to ICA. The closing of the transaction
is expected prior to the end of June 2012 and is subject to certain approvals.
ICA expects to consolidate 100% of San Martin effective as of the date of
closing, in accordance with IFRS.
Empresas ICA, S.A.B. de C.V. is Mexico's largest construction and
infrastructure operations company. Founded in 1947, ICA's principal lines of
business are civil and industrial construction and engineering; infrastructure
operations, including airports, toll roads, and water systems; and
homebuilding. For more information visit www.ica.com.mx/ir.
The Empresas ICA, S.A.B. de C.V. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10914
This press release may contain projections or other forward-looking statements
related to ICA that reflect ICA's current expectations or beliefs concerning
future events. Such forward-looking statements are subject to various risks and
uncertainties and may differ materially from actual results or events due to
important factors such as changes in general economic, business or political or
other conditions in Mexico, Latin America or elsewhere, changes in capital
markets in general that may affect policies or attitudes towards lending to
Mexico or Mexican companies, changes in tax and other laws affecting ICA's
businesses, increased costs, unanticipated increases in financing and other
costs or the inability to obtain additional debt or equity financing on
attractive terms and other factors set forth in ICA's most recent filing on
Form 20-F and in any filing or submission ICA has made with the SEC subsequent
to its most recent filing on Form 20-F. All forward-looking statements are
based on information available to ICA on the date hereof, and ICA assumes no
obligation to update such statements.
CONTACT: Investor Relations:
Luz Montemayor
luz.montemayor@ica.com.mx
Iga Wolska
iga.wolska@ica.com.mx
relacion.inversionistas@ica.com.mx
(5255) 5272 9991 ext.3692
Victor Bravo, CFO
victor.bravo@ica.com.mx
In the United States:
Daniel Wilson Zemi Communications,
(1212) 689 9560
dbmwilson@zemi.com
News Source: NASDAQ OMX
30.05.2012 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Empresas ICA, S.A.B. de C.V.
Mexico
Phone:
Fax:
E-mail:
Internet:
ISIN: US2924482068
WKN:
End of Announcement DGAP News-Service
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Empresas ICA, S.A.B. de C.V.
30.05.2012 15:00
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MEXICO CITY, 2012-05-30 15:00 CEST (GLOBE NEWSWIRE) --
Empresas ICA, S.A.B. de C.V. (BMV:ICA) (NYSE:ICA), the largest engineering,
procurement, construction and infrastructure operations company in Mexico,
announced the signing of an agreement to acquire a 51% shareholding in San
Martin Contratistas Generales S.A. ('San Martin'), Peru's leading company
dedicated principally to construction in the mining sector.
San Martin, founded in 1960, is Peru's largest construction services company
for open pit and site preparation works for the mining industry. During the
last three years San Martin's revenues increased at an average annual rate of
35%, reaching approximately US$ 240 million in 2011. San Martin's backlog as of
December 31, 2011 totaled US$ 440 million, which includes contracts that will
be executed during the next five years.
The purchase price was based on an earn out formula that takes into account
various factors, including San Martin's EBITDA during 2011 to 2014, and is
payable over a five year period. The accumulated purchase price could range
from the initial payment of US$ 18 million, payable upon closing, to a maximum
of US$ 123 million, with a likely range between US$ 80 million and US$ 100
million based on current reasonable projections of the company's performance.
This strategic transaction reflects ICA's international expansion initiative
and interest in forming partnerships with domestic groups of proven experience
and recognized prestige in select Latin American countries. Peru has grown at
an average rate of 6.4% over the past 10 years, with sound macroeconomic
management and a proven legal framework for foreign investment and
infrastructure development.
Julian Siucho, the Chairman of San Martin, noted: 'By joining forces with ICA,
we will be able to take San Martin to the next level of growth and
profitability. The scope of ICA's operations and financial strength will make
it possible for us to undertake larger and more complex projects than at
present. In addition, the partnership will enable us to take our mining
construction expertise to other countries in the region.'
Alonso Quintana, ICA's Chief Operating Officer, added: 'ICA believes that the
acquisition of a majority holding in San Martin creates value for ICA and ICA's
shareholders. San Martin is a proven leader with a superior management team and
shared corporate values. The company's expertise opens up a new range of
business opportunities for ICA in civil construction. We have operated in Peru
since 1996, and our agreement with San Martin is an important step forward in
ICA's international expansion initiative. We look forward to a long and
productive partnership with San Martin.'
BBVA acted as a sole financial advisor to ICA. The closing of the transaction
is expected prior to the end of June 2012 and is subject to certain approvals.
ICA expects to consolidate 100% of San Martin effective as of the date of
closing, in accordance with IFRS.
Empresas ICA, S.A.B. de C.V. is Mexico's largest construction and
infrastructure operations company. Founded in 1947, ICA's principal lines of
business are civil and industrial construction and engineering; infrastructure
operations, including airports, toll roads, and water systems; and
homebuilding. For more information visit www.ica.com.mx/ir.
The Empresas ICA, S.A.B. de C.V. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10914
This press release may contain projections or other forward-looking statements
related to ICA that reflect ICA's current expectations or beliefs concerning
future events. Such forward-looking statements are subject to various risks and
uncertainties and may differ materially from actual results or events due to
important factors such as changes in general economic, business or political or
other conditions in Mexico, Latin America or elsewhere, changes in capital
markets in general that may affect policies or attitudes towards lending to
Mexico or Mexican companies, changes in tax and other laws affecting ICA's
businesses, increased costs, unanticipated increases in financing and other
costs or the inability to obtain additional debt or equity financing on
attractive terms and other factors set forth in ICA's most recent filing on
Form 20-F and in any filing or submission ICA has made with the SEC subsequent
to its most recent filing on Form 20-F. All forward-looking statements are
based on information available to ICA on the date hereof, and ICA assumes no
obligation to update such statements.
CONTACT: Investor Relations:
Luz Montemayor
luz.montemayor@ica.com.mx
Iga Wolska
iga.wolska@ica.com.mx
relacion.inversionistas@ica.com.mx
(5255) 5272 9991 ext.3692
Victor Bravo, CFO
victor.bravo@ica.com.mx
In the United States:
Daniel Wilson Zemi Communications,
(1212) 689 9560
dbmwilson@zemi.com
News Source: NASDAQ OMX
30.05.2012 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Empresas ICA, S.A.B. de C.V.
Mexico
Phone:
Fax:
E-mail:
Internet:
ISIN: US2924482068
WKN:
End of Announcement DGAP News-Service
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