Southern Cross Group and Evercore Mexico Capital Partners Sign Agreement to
Acquire a Controlling Interest in Servicios Corporativos Javer
MEXICO CITY and MONTERREY, Mexico, Oct. 26 /PRNewswire/ -- Southern Cross
Group, Evercore Mexico Capital Partners (jointly the "Funds") and Servicios
Corporativos Javer, S.A.P.I de C.V. ("Javer" or the "Company") announced today
that they have signed an agreement by means of which the Funds acquire a
controlling interest in the Company.
This transaction allows Javer, leader in the Mexican homebuilding sector, to
incorporate strategic partners with proven financial and operating experience
throughout the region. Javer, which plans to build more than 17,500 homes in
2009 and has land reserves in excess of 100,000 units, is one of the fastest
growing developers of homes in the low, middle and residential segments in
Mexico.
"The operating experience, strategic thinking and regional view of our new
shareholders will contribute towards further consolidating Javer's growth as
we work towards becoming one of the country's leading homebuilders and
consider accessing the public equity markets," stated Salomon Marcuschamer,
founder of Javer.
This transaction does not involve any changes in the Company's management,
operating team or strategy. Roberto Russildi and Eugenio Garza, CEO and CFO
respectively, will continue heading the Company's operations as they, and the
rest of the senior management team, have agreed to sign long-term employment
contracts with incentives tied to the performance of the Company.
Salomon Marcuschamer, who will serve as Javer's Honorary Chairman, will remain
actively involved in the management of the Company particularly with respect
to land acquisition and development. The Board of Directors will also include
Ricardo Rodriguez, Cesar Perez Barnes and Sebastian Villa from Southern Cross
Group, Pedro Aspe and Alfredo Castellanos from Evercore, Fernando Alvarez
Neila, Joe Ackerman and independent board members to be appointed shortly
after the closing. Ricardo Rodriguez will act as Chairman of the Board.
The new partners have a long-standing track record of achieving extraordinary
investment returns by focusing on improving the operations of their portfolio
companies while operating within very conservative leverage structures. The
Funds do not intend to implement any fundamental changes in Javer's overall
business or financial strategy, especially with respect to leverage and
dividend policies as the intention is to re-invest free cash flow to maximize
growth. The transaction does not involve any modification of the cash balance
or financial position at Javer.
Cesar Perez Barnes, Managing Director of Southern Cross, stated, "The
incorporation of an investor group with long-standing, proven experience in
the region will contribute significantly to consolidate the
institutionalization of management and corporate governance procedures. We
believe our capabilities perfectly complement Javer's vision and that,
together, we will continue maximizing the Company's value within a general
context of growth in the Mexican homebuilding sector."
Homebuilding in Mexico is approximately a US$ 20 billion industry with annual
demand for homes in excess of 800,000 units with over 720,000 mortgages
granted each year(1).
"Our investment in Javer relies on solid fundamentals, in one of the most
relevant sectors of the country's economic activity. The market knowledge and
business expertise of Javer's executive management have allowed it to become a
leader in the sector and is a testament of the company's competitive
position," declared Pedro Aspe, Co-Chairman of Evercore.
Roberto Russildi, Javer's CEO commented on the transaction, "At Javer we are
honored by the fact that such well recognized investment firms chose to join
us in what we foresee to be an unparalleled market opportunity. It is a true
vote of confidence to what the company and our team have achieved to date.
Their participation, together with that of Mr. Marcuschamer, provides a
tremendous sponsorship umbrella that will guide us as we execute our business
strategy which includes titling in excess of 45,000 homes over the next couple
of years."
The closing of this transaction, which is expected in November of this year,
will require approval from Mexican regulatory authorities.
(1) Industry figures according to Infonavit and Softec; does not include the
Vacational segment.
Southern Cross Group, a leading private equity fund in Latin America founded
in 1998, has offices in Argentina, Brazil, Chile, Mexico and the United
States. Its companies are worth more than $1.5 billion dollars and participate
in various economic sectors such as retail, pharmaceutical, personal care
products and household production, oil and gas exploration, hospitality, food
distribution, generation thermal power, natural gas distribution and water
services. Of its more than 20 transactions, the best known in the Mexican
market include the acquisition of MMCinemas, the sale of Telex-Chile to
Telmex, the sale of Construmega to Cemex and development of MorePharma. For
additional information please visit: www.southerncrossgroup.com
Mexico Evercore Capital Partners is the private equity division of Protego and
manages more than $125 million dollars. Its first investment was More Pharma;
the investment in Javer will represent the second joint venture in Mexico
Evercore Capital Partners with Southern Cross Group. Protego, founded in 1996
by Pedro Aspe, is a leader in investment banking advice. In 2006 it merged
with Evercore, a leading US investment banking and investment management firm.
Evercore has a presence in New York, Los Angeles, San Francisco, Boston, DC,
Houston, London, Mexico City, Monterrey, Japan, Brazil, France and China.
Other private equity investments in which Protego has participated are
Volaris, Ike Assistance and Lipu.
Javer, based in Monterrey, Nuevo Leon, was founded in 1973 by Salomon
Marcuschamer. It is one of the largest developers of low-income homes in
Mexico. The company has a 19% market share in loans granted by Infonavit in
the State of Nuevo Leon. It plans to build over 17,500 houses in 2009 and has
land reserves in excess of 100,000 units. The company provides strong social
support to the communities in which it participates through the installation
of schools, medical centers, and sports complexes.
Disclaimer:
This press may include forward-looking statements. These forward-looking
statements include, without limitation, those regarding Javer's future
financial position and results of operations, the Company's strategy, plans,
objectives, goals and targets, future developments in the markets in which
Javer participates or are seeking to participate or anticipated regulatory
changes in the markets in which Javer operates or intends to operate.
Javer cautions potential investors that forward looking statements are not
guarantees of future performance and are based on numerous assumptions and
that Javer's actual results of operations, including the Company's financial
condition and liquidity and the development of the Mexican mortgage finance
industry, may differ materially from the forward-looking statements contained
in this press release. In addition, even if Javer's results of operations are
consistent with the forward-looking statements contained in this press
release, those results or developments may not be indicative of results or
developments in subsequent periods.
Important factors that could cause these differences include, but are not
limited to: risks related to Javer's competitive position; risks related to
Javer's business and Company's strategy, Javer's expectations about growth in
demand for its products and services and to the Company's business operations,
financial condition and results of operations; access to funding sources, and
the cost of the funding; changes in regulatory, administrative, political,
fiscal or economic conditions, including fluctuations in interest rates and
growth or diminution of the Mexican real estate and/or home mortgage market;
increases in customer default rates; risks associated with market demand for
and liquidity of the notes; foreign currency exchange fluctuations relative to
the U.S. Dollar against the Mexican Peso; and risks related to Mexico's
social, political or economic environment.
Melanie Carpenter
i-advize Corporate Communications, Inc.
Tel: (212) 406-3692
E-mail: mcarpenter@i-advize.com
SOURCE Servicios Corporativos Javer, S.A.P.I de C.V.
Melanie Carpenter, i-advize Corporate Communications, Inc., +1-212-406-3692,
mcarpenter@i-advize.com
