General Atlantic Joins Grupo Sura’s Buy of ING Group’s Latin America Assets

Grupo de Inversiones Suramericana, or Grupo Sura, said Thursday that it has closed its deal to buy the Latin America assets of ING Group. The deal was announced on July 25 and regulatory authorities in in Colombia, Mexico, Chile, Peru and Uruguay have approved the deal, according to the statement issued late Thursday. General Atlantic is part of the deal and is investing $300 million. The growth equity firm is joining Grupo Bolívar, IFC and Bancolombia, which are investing $1.05 billion. In a separate statement, ING Group said total consideration for the deal amounted to about 2.65 billion EURO (US$3.4 billion), including 65 million in assumed debt.

PRESS RELEASE

GRUPO SURA has become the largest pension fund player in Latin America with one of the most important insurance and investment operations within the region. The regulatory authorities in Colombia, Mexico, Chile, Peru and Uruguay have all formally issued the authorizations required for Grupo de Inversiones Suramericana – GRUPO SURA- to proceed to close the acquisition of the ING Group´s assets in Latin America, as initially announced on July 25 of this year. Such closing took place today.
GRUPO SURA also announced that General Atlantic, a global investor in growth companies, will be part of this deal with an investment of USD 300 million, joining Grupo Bolívar, IFC and Bancolombia . In addition to capital, for USD 1,050 million, these top-tier co-investors bring broad knowledge and experience to team up with GRUPO SURA achieving its growth objectives.
“We are delighted to be adding these businesses to GRUPO SURA so that we can begin to share the experience and know-how that each of these companies has amassed over the years in each of their respective markets. This combination provides enormous benefits for our new affiliates. Our organizations share the same values and the same commitment to excellent customer service, and we warmly welcome our new affiliates into Grupo Sura,” stated David Bojanini Garcia, CEO of GRUPO SURA. “With our new investors, GRUPO SURA and the combined businesses have sound and stable backing so that our clients can have the utmost confidence in us for their savings and investments.”
William E. Ford, General Atlantic’s CEO, said, “As a market leader in financial services in the fast growing Andean countries – Chile, Colombia, and Peru- and with a strong position in Mexico and Uruguay, GRUPO SURA’s new acquisition is well positioned to add new investment management services and to accelerate its growth in the region. We are pleased to partner with GRUPO SURA, a leading Latin American financial services group with a record of successful acquisitions.”
GRUPO SURA shall continue to uphold its core strategy of harnessing synergies among the companies that make up its investment portfolio, consolidating markets, and
GRUPO SURA has become the largest pension fund player in Latin America with one of the most important insurance and investment operations within the region. The regulatory authorities in Colombia, Mexico, Chile, Peru and Uruguay have all formally issued the authorizations required for Grupo de Inversiones Suramericana – GRUPO SURA- to proceed to close the acquisition of the ING Group´s assets in Latin America, as initially announced on July 25 of this year. Such closing took place today.
GRUPO SURA also announced that General Atlantic, a global investor in growth companies, will be part of this deal with an investment of USD 300 million, joining Grupo Bolívar, IFC and Bancolombia . In addition to capital, for USD 1,050 million, these top-tier co-investors bring broad knowledge and experience to team up with GRUPO SURA achieving its growth objectives.
“We are delighted to be adding these businesses to GRUPO SURA so that we can begin to share the experience and know-how that each of these companies has amassed over the years in each of their respective markets. This combination provides enormous benefits for our new affiliates. Our organizations share the same values and the same commitment to excellent customer service, and we warmly welcome our new affiliates into Grupo Sura,” stated David Bojanini Garcia, CEO of GRUPO SURA. “With our new investors, GRUPO SURA and the combined businesses have sound and stable backing so that our clients can have the utmost confidence in us for their savings and investments.”
William E. Ford, General Atlantic’s CEO, said, “As a market leader in financial services in the fast growing Andean countries – Chile, Colombia, and Peru- and with a strong position in Mexico and Uruguay, GRUPO SURA’s new acquisition is well positioned to add new investment management services and to accelerate its growth in the region. We are pleased to partner with GRUPO SURA, a leading Latin American financial services group with a record of successful acquisitions.”
GRUPO SURA shall continue to uphold its core strategy of harnessing synergies among the companies that make up its investment portfolio, consolidating markets, and fostering sustainable business, in order to create added value for its clients and shareholders.
“The employees and clients of the companies that we have acquired in Latin America can rest assured that GRUPO SURA, as part of its long-term strategy, is committed to fostering the already excellent quality of the workforce that exists today as well as to provide our new affiliates with the best possible benefits,” reaffirmed David Bojanini. “With the current state of the global economy, the emerging markets are becoming a more attractive investment option. This alliance represents a long-term commitment to building a leading firm in Latin America.”
GRUPO SURA will now embark on a corporate identity transition period, which is expected to conclude in a few weeks in Chile, Mexico, Peru and Uruguay and in the middle part of 2012 for Colombia. The acquired companies will continue their normal course of business, ensuring that affiliates are provided with the best possible service. ING’s former clients shall continue to deal with the Company just as before and shall be attended by the same professional, experienced staff.
In November GRUPO SURA ratified the senior management executives of the companies in Mexico, Chile, Peru and Uruguay, based on the Company’s confidence in the human talent and excellent results of these companies, all of which made this acquisition so attractive. Nevertheless, this process has still to be ratified in Colombia, where we expect to obtain the required authorization for an integrated operation with Protección.
About this acquisition
The agreement governing GRUPO SURA´s acquisition of the ING assets in Chile, Mexico, Uruguay, Peru and Colombia was first announced back in July. The final value of this transaction came to USD 3.614 million, which was the largest acquisition ever to be carried out by a Latin American company in the region.
As we had initially projected, the financing arrangements included the Company’s cash resources, funds obtained from an IPO of preferred shares, a portion of debt with private banks and contributions received from top-tier co-investors such as International Finance Corporation, Grupo Bolívar, Bancolombia and General Atlantic.
About GRUPO SURA
Grupo de Inversiones Suramericana is a multi-Latin holding company listed on the Colombian stock exchange and registered with the ADR- Level 1 program in the United States. It is also listed with the Latibex Market for Latin American Stocks in Euros hosted by the Madrid Stock Exchange. Its holdings enjoy a presence in various Latin
About Bancolombia December 29th, 2011
With over 130 years of experience, Bancolombia is the largest bank in Colombia, offering a wide range of products and services to a diversified individual and corporate base of more than 6.9 million customers. BANCOLOMBIA delivers its products and services via its regional network comprised of Colombia´s largest non-government owned banking network, El Salvador´s leading financial conglomerate (Banagricola S.A.), off-shore banking subsidiaries in Panama, Cayman and Puerto Rico, as well as an agency in Miami. Together, BANCOLOMBIA and its subsidiaries provide stock brokerage, investment banking, leasing, factoring, consumer finance, fiduciary and trust services, asset management, and insurance, among others.