Grupo Aeroportuario del Pacifico Informs the Acquisition of 51.5% of the Shares Representing the Capital Stock of the Company “GWTC”

Rhea-AI Summary

Grupo Aeroportuario del Pacifico (GAP), listed on NYSE as PAC, announced the acquisition of 51.5% of the shares of Guadalajara World Trade Center (GWTC) for Ps. 875.5 million. GWTC consists of seven companies specializing in international cargo services at Guadalajara and Puebla Airports. In 2023, GWTC generated revenues exceeding Ps. 1 billion with an EBITDA margin of around 40%, and no financial debt. The transaction, expected to close by June 25, will be financed either through a bank loan or the company's resources. This acquisition helps GAP gain expertise in the cargo business and leverage nearshoring opportunities in the region.

Positive

• Acquisition of 51.5% of GWTC for Ps. 875.5 million.
• GWTC's 2023 revenue exceeded Ps. 1 billion.
• EBITDA margin of around 40% for GWTC in 2023.
• No financial debt for GWTC.
• Strategic opportunity to leverage nearshoring advantages.

Negative

• Uncertainty in financing the acquisition; still pending decision on bank loan or internal resources.

Insights

Financial Analyst

The acquisition by Grupo Aeroportuario del Pacífico (GAP) of 51.5% of the shares of Guadalajara World Trade Center (GWTC) represents a significant strategic move. Firstly, the deal, valued at Ps. 875,504,411.57, will be financed either through a bank loan or using the company's resources, highlighting GAP's strong financial position.

GWTC generated revenues above Ps. 1 billion in 2023 with an impressive EBITDA margin of 40%, indicating a healthy and profitable business. Moreover, the absence of financial debt makes GWTC an attractive acquisition target. GAP's foray into the cargo business, specifically in free trade zones at Guadalajara and Puebla Airports, aligns with current nearshoring trends, potentially providing new revenue streams and diversifying its portfolio.

In the short term, the acquisition may lead to increased operational costs and integration risks. However, the long-term prospects appear positive, as GAP can leverage GWTC's robust financials and strategic location to capitalize on growing international trade volumes. It is important for retail investors to monitor how GAP manages the integration and whether the expected synergies materialize.

Market Research Analyst

This acquisition should be viewed from the lens of market opportunity and strategic positioning. GWTC's expertise in handling, storage and custody services for international cargo places GAP in a prime position to benefit from the growing trend of nearshoring. As companies look to relocate supply chains closer to end markets, particularly in the context of increasing geopolitical tensions and supply chain disruptions, GAP's acquisition could position it as a key player in the logistics and cargo space in Mexico.

Furthermore, the strategic locations of GWTC within free trade zones at Guadalajara and Puebla Airports offer significant competitive advantages, including reduced tariffs and quicker customs processing. This can enhance GAP's value proposition to potential clients looking to streamline their logistics operations. Investors should keep an eye on the evolving competitive landscape and GAP's ability to capture market share in the cargo segment.

GUADALAJARA, Mexico, June 11, 2024 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V., (NYSE:PAC; BMV: GAP) (“the Company” or “GAP”) informs that today signed the acquisition of 51.5% of the shares representing the capital stock of the company Guadalajara World Trade Center, S.A. de C.V. (“GWTC”), for a total amount of Ps. 875,504,411.57 (EIGHT HUNDRED SEVENTY-FIVE MILLION FIVE HUNDRED FOUR THOUSAND FOUR HUNDRED ELEVEN PESOS 57/100).

GWTC is a group consisting of seven companies that specialize in handling, storage, and custody services for international cargo. These services are provided in facilities classified as free trade zone (recinto fiscal) at Guadalajara Airport and Puebla Airport.

In 2023, GWTC generated revenues above Ps. 1.0 billion, with an EBITDA margin of around 40%, and without financial debt.

The transaction is expected to be closed and paid no later than June 25, pending to define if through a bank loan or using the Company's resources.

With this acquisition, GAP aims to gain knowledge and experience in the cargo business. It also aims to take advantage of the strategic opportunity that nearshoring offers in the region.

Company Description

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico’s Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali, and Los Mochis. In February 2006, GAP’s shares were listed on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP”. In April 2015, GAP acquired 100% of Desarrollo de Concessioner Aeroportuarias, S.L., which owns a majority stake in MBJ Airports Limited, a company operating Sangster International Airport in Montego Bay, Jamaica. In October 2018, GAP entered into a concession agreement for the Norman Manley International Airport operation in Kingston, Jamaica, and took control of the operation in October 2019.

	This press release may contain forward-looking statements. These statements are statements that are not historical facts and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations, and the factors or trends affecting financial condition, liquidity, or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends, or results will occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

^{In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and Article 42 of the “Ley del Mercado de Valores”, GAP has implemented a “whistleblower” program, which allows complainants to anonymously and confidentially report suspected activities that involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party responsible for collecting these complaints, is 800 04 ETICA (38422) or WhatsApp +52 55 6538 5504. The website is www.lineadedenunciagap.com or by email at denuncia@lineadedenunciagap.com. GAP’s Audit Committee will be notified of all complaints for immediate investigation.}

Alejandra Soto, Investor Relations and Social Responsibility Officer	asoto@aeropuertosgap.com.mx
Gisela Murillo, Investor Relations	gmurillo@aeropuertosgap.com.mx / +52 33 3880 1100 ext. 20294

FAQ

What percentage of GWTC shares did Grupo Aeroportuario del Pacifico acquire?

Grupo Aeroportuario del Pacifico acquired 51.5% of GWTC shares.

How much did Grupo Aeroportuario del Pacifico pay for the GWTC shares?

Grupo Aeroportuario del Pacifico paid Ps. 875.5 million for the GWTC shares.

When is the acquisition of GWTC shares by Grupo Aeroportuario del Pacifico expected to close?

The acquisition is expected to close by June 25.

What was GWTC's revenue in 2023?

GWTC's revenue in 2023 exceeded Ps. 1 billion.

What is the EBITDA margin for GWTC?

GWTC had an EBITDA margin of around 40% in 2023.

Did GWTC have any financial debt?

No, GWTC did not have any financial debt.

What strategic benefits does this acquisition offer Grupo Aeroportuario del Pacifico?

The acquisition helps GAP gain knowledge and experience in the cargo business and take advantage of nearshoring opportunities in the region.