Costco to Buy Out Mexican Venture Partner

Costco has reached an agreement with Controladora Comercial Mexicana (CCM), its partner in Costco de Mexico, to acquire CCM's 50 percent interest in the Mexican operations.

A Costco statement put the purchase price at $760.4 million. In addition, Costco de Mexico has declared a cash dividend of about $340.85 million, 50 percent payable to Costco and 50 percent to CCM. Costco will use its dividend proceeds to fund the purchase, while CCM will use its share of the dividend to pay down debt.

Jaime Gonzalez Solana will continue in his current post as CEO of Costco de Mexico, the statement said. Also, Guillermo Gonzalez Nova and Carlos Gonzalez Zabalegui, respectively CCM's chairman and CEO, will continue as members of Costco de Mexico's board.

The closing of the deal is subject to the approvals of the Mexican Federal Competition Commission and CCM's shareholders.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money