Grupo Industrial Saltillo, S.A.B de C.V.
Grupo Industrial Saltillo Announces COFECE Approval of Sale of Its Water Heater Business (Calorex)
Friday, March 22, 2019 9:50 PM
MEXICO CITY, MEXICO / ACCESSWIRE / March 22, 2019 / Grupo Industrial Saltillo, S.A.B. de C.V. (BMV: GISSA) ("the Company", "GIS" or "GISSA"), announced today that the Federal AntiTrust Commission (COFECE) has approved the transaction between GISSA and Ariston Thermo S.p.A ("Ariston Thermo") to sell GISSA's Water Heating Business (Calorex) without any restrictions.
The agreement to sell Calorex was first announced on January 14, 2019. On that date, both parties entered into a Purchase and Sale Agreement for a total purchase price of $2,787 million pesos. The companies expect to close the transaction during the second quarter of 2019, once the other terms stated in the contract are completed.
Net proceeds from this transaction will be allocated towards the prepayment of the Company's debt and general corporate purposes, which will bring GISSA flexibility to boost investment projects within the rest of its businesses and growth opportunities, in addition to improving the Company's profitability aligned with our long-term business strategy.
"We are very satisfied with the process carried out along with COFECE. Our joint effort towards this goal resulted in a favorable resolution. This transaction is a great footstep within our long-term business strategy as it gives us the opportunity to focus and simply our business portfolio and maximize our growth potential.", stated José Manuel Arana, CEO of GIS.
About Grupo Industrial Saltillo
Grupo Industrial Saltillo manufactures and commercializes auto-parts (iron or aluminum foundry and machining), Construction (water heaters, pipe fittings, ceramic and porcelain coverings) and Houseware (tableware and kitchenware products) Sectors.
Grupo Industrial Saltillo brings together the talent of 8,000 employees in 25 production units, with operations in Mexico, Spain, the Czech Republic, Poland, Italy, and China; as well as market and distribution presence in the USA.
This release may contain certain statements and forward looking information about Grupo Industrial Saltillo S.A.B. de C.V. and its subsidiaries (collectively, the "Company") which are subject to risks and uncertainties that may cause the results of the Company to differ materially from the current management´s expectations. These risks and uncertainties include, without limitation: the development of new products and their commercialization, demand and acceptance of the Company´s products, products and prices of the competitors, economic conditions in the markets and geographic regions of the Company´s products, as well as foreign currency fluctuations.
About Ariston Thermo
Ariston Thermo is a global Italian private company in the thermal industry with operations in 40 countries, which manufactures and markets water heaters, heating pumps, burners and components, and offers water heating solutions for the residential and commercial segments. Ariston Thermo generated global sales of €1.6 billion Euros in 2017, through a team of 7,000 employees.
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SOURCE: Grupo Industrial Saltillo, S.A.B de C.V.