Private equity investor Advent International is to acquire Viakem SA, the Mexican crop-protection-chemicals producer. Terms of the deal, which is expected to close in the third quarter of 2016, have not been disclosed.
Founded in 1938, VIAKEM is the only Latin America-based custom and toll manufacturer of fine crop protection chemicals serving global agrochemical companies. The company has developed strong relationships with the largest agrochemical players and is focused on offering integral solutions to the chemical industry. VIAKEM will continue to serve its clients worldwide as its excellent geographic location and competitive cost structure provide the company with a unique opportunity to serve global demand.
“We are excited to begin working with VIAKEM’s highly experienced management team, as it helps the company create a leading position in the fine chemicals contract manufacturing industry globally,” says Luis Solórzano, a Managing Director and Head of Mexico for Advent. “VIAKEM’s track record and optimal geographic location provide competitive advantages vis-à-vis other manufacturers, while strong fundamentals in the crop protection industry provide a solid platform from which to capture growth. Additionally, we believe that the agrochemicals market, for which VIAKEM serves as an outsourcing partner, will enjoy healthy growth based on the macroeconomic trends of increasing population and wealth, as well as the need to increase resource efficiency.”
Emilio Assam Helú, Chief Executive Officer of VIAKEM, says: “There are tremendous growth opportunities for VIAKEM in the global industry. Advent’s resources and expertise will contribute to VIAKEM’s long term business plan, through a focus on customer service and enhanced R&D, while maintaining its top production standards as the company enters new product markets and expands its leading position in Latin America and throughout the world. We believe Advent is the right partner for us as we continue to grow and capitalise on our competitive cost structure and long-standing relationships with our valued clients.”
VIAKEM’s manufacturing plant is located in Monterrey, Mexico, which is recognised as the country’s industrial heart and an important technological development centre.
Advent has been active in the chemicals and materials industry for more than 25 years, during which time it has invested in over 30 companies in the sector globally. Its recent investments in the sector include GTM, Allnex, Maxam, Mondo Minerals, Oxea and HC Starck.
Advent is one of the leading private equity investors in Latin America, having raised more than $6 billion for investment in the region from institutional investors globally. Since 1996, the firm has invested in over 50 Latin American companies and fully realised its positions in 34 of those businesses. In addition to VIAKEM, recent investments in Mexico include Grupo Financiero Mifel, a leading mid-sized bank serving the mass-affluent retail segment and small and medium-sized companies, InverCap Holdings, a leading Mexican mandatory pension fund manager and our recent exit in Aerodom, the leading airport group in the Dominican Republic.
Galicia Abogados served as legal advisor to Advent while Santos-Elizondo-Cantu-Rivera Gonzalez-de la Garza-Mendoza, S.C.served as legal advisor to VIAKEM.
