July 12th, 2024 – Montevideo, Uruguay– Siuma Capital has served as exclusive financial advisor to the shareholders of Grupo Magna (“Magna”) in its 100% acquisition of Zenex Auto (“Zenex”). Zenex is a multi-brand automotive operator in Uruguay, servicing namesake brands such as Mazda, Kia and Fiat in the local market. Magna, headquartered in the Dominican Republic, is a leading conglomerate in the automotive space with presence in 11 countries and relationships with 8+ OEMs.
This cross-border transaction showcases the dynamism of the automotive industry in the region and the ongoing interest of regional players to consolidate through venturing into new brands and geographies. The transaction also highlights the attractiveness of Uruguay from the lens of foreign investors – with inflation at historic lows and equity risk premiums at minimal levels, the environment is more favorable than ever for doing business in the country.
We salute the Arrieta family for their decades of commitment to the automotive industry in Uruguay – they have built a successful distribution, retail, and aftersales business since 1991 and have been responsible for developing the Mazda brand locally since 1999.
We thank Magna for their trust in Siuma Capital to lead this buy side process. From our initial contact with the seller all the way to the post-signing negotiations, our team has worked arduously to execute a transaction that is beneficial for all parties and, most importantly, ties with Magna’s previously identified investment thesis.
About Grupo Magna: Grupo Magna is a leader in the automotive industry with 4,000+ employees and operations in 11 countries across Latin America. The company, based in Santo Domingo, has maintained the #1 market share position in the Dominican Republic since 2010 with its representation of Hyundai and BMW. Internationally, it participates in the assembly and distribution of motorcycles in Colombia and represents 8+ OEMs in countries like Mexico, Guatemala, and Jamaica.
About Zenex Auto: Zenex is a leading multi-brand automotive operator in Uruguay. The company is the exclusive distributor for Mazda and has been selling Kia and Fiat vehicles for 20+ years. Zenex has solidified its position in the local market through its excellence in after sales and overall commitment to quality.
About Siuma Capital: Siuma Capital is a regional investment banking firm specializing in mergers and acquisitions, capital raising, and strategic advisory across the main economies of Latin America and the United States. With a strong focus on cross-border transactions, Siuma Capital has developed a reputation for delivering tailormade M&A solutions while advising on both the sell side and the buy side.
