U.S. membership warehouse club chain Costco Wholesale Corp. on Thursday announced a deal to acquire the 50 percent stake it did not already own in its Mexico unit from Controladora Comercial Mexicana for $760.4 million.
The press release also said Costco Mexico has declared a cash dividend of approximately 4.8 billion pesos ($340.85 million), 50 percent it payable to a Costco Wholesale subsidiary and the other half to CCM, the holding company of a group of Mexican hypermarkets.
Costco Wholesale will fund the acquisition in part with the dividend proceeds, while CCM will use the dividend and the buyout proceeds to pare debt, the release said.
The transaction is subject to approval by Mexico’s Federal Competition Commission.
The release also said CCM’s chairman, Guillermo Gonzalez Nova, and CEO, Carlos Gonzalez Zabalegui, will remain on the board of directors of Costco Mexico, whose CEO will continue to be Jaime Gonzalez Solana.
Costco currently operates 602 warehouses: 435 in the United States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in Britain, 13 in Japan, eight in Taiwan, seven in South Korea and three in Australia.
Costco Wholesale’s share price on the Nasdaq was up 2.42 percent Thursday afternoon to $89.59 and has risen 7.56 percent in 2012 and 13.1 percent over the past 12 months.