Grupo Gigante offers $690.5 million for a 50% stake in Office Depot de México amid the merger of Office Depot Inc. and OfficeMax.

Overview of Grupo Gigante

Grupo Gigante SAB de CV, a prominent Mexican company, reported revenues of approximately $941.9 million in 2011 and $1.097.6 million in the first nine months of 2012. The company operates a diverse portfolio of businesses including self-service retail, cafes, and specialized commerce, establishing itself as a significant player in the Mexican market.

Details on Office Depot

Office Depot Inc., an American multinational office supply retailer, had revenues of $10.695.7 million in 2012. Grupo Gigante recently proposed a purchase offer of $690.5 million for a 50% stake in Office Depot de México SA de CV, which generated revenues of $1.171.0 million in the same year. This offer notably expires on February 28, 2013.

Industry Overview in Mexico

The retail industry in Mexico has undergone significant transformations in recent years, characterized by rapid technological advancements and changing consumer behaviors. As the economy grows, the

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Grupo Gigante SAB de CV

invested in

Office Depot de México SA de CV

in 2013

in a Buyout deal

Disclosed details

Transaction Size: $691M

Revenue: $1,171M

Enterprise Value: $1,354M

Equity Value: $691M


Multiples

EV/Revenue: 1.2x

P/Revenue: 0.6x

Deal Parameters
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