Table of Contents
ISSAQUAH, Wash. — Costco Wholesale Corp. says it has agreed to buy the balance of its Costco de Mexico SA de C.V. chain from joint venture partner Contraladora Comercial Mexicana S.A.B. de C.V. (CCM).
Costco Wholesale Corp. says it has agreed to buy the balance of its Costco de Mexico SA de C.V. chain from joint venture partner Contraladora Comercial Mexicana S.A.B. de C.V. (CCM).
Costco will pay about $760.4 million (based on current exchange rates) for CCM’s 50% stake in Costco de Mexico, which currently operates 32 warehouse clubs. The deal is subject to the approval of CCM shareholders and the Mexican Federal Competition Commission.
Guillermo Gonzales Nova, chairman of CCM, and Carlos Gonzales Zabalegui, CCM’s chief executive officer, will continue to serve on Costco de Mexico’s board. Jaime Gonzales Solana will continue to serve as CEO of Costco de Mexico.
Costco de Mexico has also declared a cash dividend of about $340.9 million, half of which will be paid to CCM and half of which will go to a Costco subsidiary. Costco will use the dividend proceeds, along with existing cash and investment balances, to fund the purchase of CCM’s stake. CCM will use the dividend and sale proceeds to pay down debt.
