Mexican personal care manufacturer Genomma Lab has struck a deal to sell a controlling stake in its distribution unit Grupo Marzam to private equity fund Moench Coöperatief for MXN1.35 billion, to be paid in two lump sums – MXN1.05 billion at the close and the remaining MXN300 million on the first anniversary of the transaction. The Latin American manufacturer will initially divest 50 percent plus one share. Moench will also receive call options to increase its stake up to 90 percent over the next seven years.
Genomma bought Grupo Marzam a year ago for MXN1.86 billion to expand access to the traditional channel and improve the cash conversion cycle for its personal care and pharmaceutical products, which include shampoo brands Affair and Alert and deodorant marque English Lady.
Since the acquisition, Genomma has improved distribution services to the pharmaceutical industry by offering a more personalized focus at the point of sale, resulting in increased market share, sales growth and profitability.
“The higher transaction value of Grupo Marzam is testament to the strength of our team’s efforts to restructure the business and optimize EBITDA since we acquired a controlling interest in the distribution company. We are pleased to partner with Moench Coöperatief, a group of long-term experienced investors. Going forward, we will work together to continue to improve Grupo Marzam’s operations, while providing Genomma Lab’s products the expanded reach from Grupo Marzam’s robust distribution network,” said Rodrigo Herrera Aspra, President and CEO at Genomma.