Gabriel del Valle, Alonso Montes de Oca and Ernesto Talamás

Ritch Mueller assists in BBB Foods public offering

Ritch Mueller has assisted J.P. Morgan, Morgan Stanley, BofA Securities, Scotiabank and UBS, as underwriters, in connection with the initial public offering of 33,660,589 shares of class A common stock by BBB Foods on the New York Stock Exchange (NYSE).

This transaction closed on 13 February, and involved the jurisdictions of Mexico and New York, where the offering was made at a placement price of USD$17.50 per share, raising gross proceeds of USD $589 million.

This marks the first IPO by a Mexico-based business since 2017 and, notably, the first SEC-registered IPO by a Mexico-based business since 2013.

Other participating firms include Simpson Thacher as NY counsel to BBB Foods, Cleary Gottlieb as NY counsel to the underwriters, Greenberg Traurig as Mexico counsel to BBB Foods and Conyers Dill & Pearman as BVI counsel to BBB Foods.

BBB Foods, also known as “Tiendas 3B”, is a hard discount grocery retail in Mexico and one of the fastest-growing retailers in the country, measured by sales and store growth rates. The company offers a variety for products, including quality packaged foods, beverages, tobacco, personal care, house cleaning, and over-the-counter healthcare products, at bargain prices.

Juan Pablo Cappello, founding partner of PAG Law, acted as an independent director of Tiendas 3B and is long-time advisor to the Company. 

Simpson Thacher’s team included S. Todd Crider, Kirsten L. Davis, Marcelo B. Lorenzen, Enrique Güijosa, Douglas Ogata and Isaac Cattan (Latin America – Capital Markets); Jonathan E. Cantor and Lina Pan (Tax); Jamin R. Koslowe and Laura R. Gallo (Executive Compensation and Employee Benefits); Steven DeLott (Insurance); and Jennifer Nadborny and Bettina Elstroth (Public Company Advisory Practice).

Cleary’s team included partners Jorge Juantorena and Manuel Silva and law clerk José Juan Vázquez Orendain. Partner Matthew Brigham, associate Samuel Kramer, and law clerk Jack Samuel advised on tax matters. Senior attorney Elizabeth Chang advised on FINRA matters. All lawyers are based in New York.

Ritch Mueller’s team was led by partner Gabriel del Valle Mendiola (pictured left), with support of lawyers Alonso Montes de Oca Márquez (pictured centre) and Ernesto Talamás Velázquez (pictured right).

L Giselle Estrada