Overview of Transaction:
On April 30, 2015 an affiliate of Putney Capital Management, Ltd. (“Putney”) announced the acquisition of one of the main terminals for the reception, storage and distribution of cement in Puerto Rico. This strategic investment was made in partnership with Colombia’s Cementos Argos (“Argos”)
The terminal, acquired for total consideration of approx. $34.0 million, has a 250,000 metric ton/year capacity and approximately 20% market share in Puerto Rico
Putney is an asset management firm, affiliated partner of VICINI, focused on the industrial and energy sectors throughout the Caribbean, Central America and Andean region. Putney is currently managing VICINI’s energy and industrial investment portfolio. Putney was founded in 2007 with offices in Santo Domingo, Dominican Republic and San Juan, Puerto Rico
Cementos Argos, S.A. (BVC: CEMARGOS / Market Cap: ~$4.3 billion) is the largest producer of cement, aggregates and concrete in Colombia, and a leading player in the Latin America and Southeastern US regions. The company operates cement and concrete production plants located throughout Colombia, Central America, the Caribbean and the United States, with 389 ready mix plants, 13 cement plants, 9 grinding facilities, and 23 cement terminals across the Americas
Strategic Rationale:
Caribbean Regional Play: Putney is an active investor in the cement and derivatives sectors in the Caribbean. The PR acquisition and partnership with Argos represent an acceleration of Putney’s regional investment strategy for the sector
Strong Fit: Argos is a leading cement operator in the Americas with presence in over 30 markets. Putney is a premier regional investor and “local” partner of choice
Strategic Market: The PR acquisition represents a new market for Argos, consuming 650,000 ton/year, with close ties to the U.S. economy and strong growth perspectives
Cobaltum Role / Results
Cobaltum acted as the exclusive strategic and financial advisor to Putney
Cobaltum advised Putney in the negotiation, structuring and execution of a regional framework for the strategic partnership with Argos, for which the PR terminal acquisition is the first transaction
Cobaltum guided Putney through the simultaneous closing of the terminal acquisition and the closing of the strategic partnership with Argos in a seamless manner despite significant structural, governance and financing complexities