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General Atlantic to Invest in Mexican Group Axo

30 May 2017

General Atlantic has agreed to make a strategic investment in Mexican multi-brand retailer Grupo Axo for an undisclosed amount. 

(Press Release) MEXICO CITY, May 30, 2017 /PRNewswire/ — Grupo Axo, a leading multi-brand retailer in Mexico, announced today that General Atlantic, a leading global growth equity firm, has agreed to make a strategic investment in the Company. As part of this transaction, Alsea, a leading Mexican multi-brand restaurant operator, will be fully exiting its position in the Company. The transaction is subject to customary closing conditions and authorization by the Mexican Antitrust Commission.

Grupo Axo is one of the largest and fastest growing retailers in Mexico, operating over 500 retail points of sale and more than 3,100 wholesale points of sale in department stores. The Company owns the exclusive rights to commercialize more than 20 leading international brands in Mexico, under licensing agreements and joint ventures. Grupo Axo owns and operate Promoda, the leading off-price retailer in Mexico with 140 stores.

“Partnering with the General Atlantic team and delaying our previously planned initial public offering is undoubtedly the right strategic decision for our business at this time,” said Andres Gómez Co CEO of Grupo Axo. “We are thrilled to welcome General Atlantic as our new investment partner as we move into this next phase of the Company’s growth. The firm’s investment marks a substantial step forward in Grupo Axo´s expansion into the Latin American market and will further enable us to capitalize on a broad array of new growth opportunities.”

“We are excited to embark on this strategic alliance with General Atlantic as it represents a significant milestone for Grupo Axo. We are grateful for Alsea’s support in accelerating our long-term growth plan over the past few years, and for being a key player in our partnership,” said Alberto Fasja Co CEO of Grupo Axo.

Bill Ford, CEO of General Atlantic said, “We remain positive on the Mexican economy and the opportunity for attractive grow equity investments. As the middle class expands, we see significant opportunity to serve the Mexican consumer and Grupo Axo is incredibly well-positioned to capitalize on this opportunity. Grupo Axo is a world-class multi-brand retailer and just the type of innovative and entrepreneur-led organization that we are committed to supporting in Mexico and around the world. We look forward to partnering with Andres, Alberto, and their entire team to help Grupo Axo achieve even greater success.”

“Grupo Axo has been successful in winning market share and increasing its sales growth over the past few years, and continues to have a thoughtful and strategic business plan to build on its track record,” Alfredo Castellanos, Managing Partner of Glisco Partners. “We remain committed to supporting Grupo Axo as the Company seeks to expand its business and its leadership position in the multi-brand retail space.”

“We have been privileged to support Grupo Axo in its early years of growth and thank the entire management team for its passion and dedication. The growth and maturity of the company during our investment period has been remarkable, and we know that the company will be in good hands with General Atlantic as the firm seeks to help take Grupo Axo’s business to new heights,” said Alberto Torrado, Chairman of the Board of Directors of Alsea.

Grupo Axo intends to drive its next phase of growth by enhancing its retail footprint through its licensed brands, bringing more internationally prominent brands to the region, and continuing to expand its off-price business’s, Promoda’s, reach to consumers. In conjunction with General Atlantic’s investment, Luis Cervantes, Martin Escobari and Andrew Ferrer will be joining Grupo Axo’s Board of Directors. General Atlantic has deep regional expertise across Latin America, with current regional investments in Clip,, Ourofino, Pague Menos, SAS, Sanfer, and XP Investimentos.

Casa de Bolsa Credit Suisse (México), S.A. de C.V., Grupo Financiero Credit Suisse (México) acted as exclusive financial advisor to Grupo Axo.