Mexican Textile Group Conquers the American Continent Grupo Siete Leguas Success Case

Mexican Textile Group conquers the American Continent Grupo Siete Leguas Success case

Grupo Siete Leguas (GSL), advised by Deloitte’s Financial Advisory and Tax and Legal Services professionals, has completed the acquisition of Santista Work Solution, S.A. (Santista) from the Brazilian Group Mover Participações S.A. (Mover).

GSL has successfully completed the “It is fair to say that Santista is not only Continent, with commercial and acquisition of the Brazilian textile one of the most recognized textile mills production activities in the U.S., Mexico, company Santista, which throughout its in South America, where they are leaders Nicaragua, Brazil and Argentina. GSL also two business units is a leading company in both jeanswear and workwear exports and holds commercial focused in the manufacture of Jeanswear industries, but also an acclaimed operations with over 40 countries in –innovative fabrics for the production of company and brand all over the world” Africa, Asia, Europe and Oceania denim clothes – and Workwear –special said José Juan-Marcos González, CEO of (Australia). “We started our acquisition fabrics for professional clothing. Santista GSL. growth strategy back in 2015 with the has operations in Brazil and Argentina, purchase of Tavex, then AALFS, and now and for the past 15 years has been With this transaction, GSL follows its path Santista. We will start now a new chapter awarded with “Prêmio Marca Brasil”, in to consolidate as the biggest textile of consolidation in our Group” said addition, in Argentina Santista owns group in the Americas and one of the Homero Wong, CFO of GSL. OMBU, the most recognized workwear largest in the world, having now brand in that country. operations in the whole American Mexican denim conquers the American Continent | Grupo Siete Leguas Success case

Both C-Suite executives stated that About Grupo Siete Leguas About Deloitte Santista will continue operating under Textile Company founded on 1958, by Financial Advisory the current management, with no Mexican businessmen. It has become the We provide strategies and services to our significant operational changes but leader in the production of denim and clients in each phase of the economic always looking for synergies and manufacture of jeans, becoming a cycle of their businesses. opportunities for growth. strategic supplier to the most important brands for such garments in the United The Financial Advisory practice in José Juan-Marcos González and Homero States. Deloitte Mexico has experts that develop Wong were directly in charge of carrying financial strategies to add value to out the purchase negotiations. They both GSL is integrated by Siete Leguas, AALFS, businesses and their shareholders. agreed in the strategic importance that Tavex and Santista. It has about 13,500 this move will represent to the Group. direct employees, from which about Our global presence allows us to have GSL is very motivated with the 8,000 are located in Mexico – in Durango, access to resources and international acquisition, which reinforces the Coahuila, Tlaxcala and Puebla –; 2,000 in experiences, adding the independence, commitment and vision to invest in Brazil Nicaragua; 2,500 in Brazil and 1,000 in objectivity, and professional style that and Argentina, and enhances and Argentina. recognizes the areas of opportunity or increases its operations in Latin America. the risks related to our client´s interests. The Group is focused in servicing important brands and clothing stores, Tax and Legal Services Contacts: such as: Levi´s, J-Crew, Polo Ralph We provide a wide variety of services related Lauren, JC Penney, Carhartt, Ariat, VF, to the fiscal matters that taxpayers must Jonatan Mendoza among others. comply with, through different lines of work. M&A Transactions Partner - Mexico GSL, on top of being focused on the Tel: +52 (55) 5080 6803 textile sector, has investments in We have a team of experienced and trained [email protected] companies from the housing, financial, professionals to develop effective strategies and mining sectors. in the tax field. Pablo Arellano Deloitte Legal Partner - Mexico Our more than 1,000 specialists help our Tel: +52 (55) 5080 6754 clients meet local and international [email protected] regulations in an efficient manner, as well as in the resolution of conflicts with the Alfonso Silva authorities and competent tribunals. M&A Transaction Services Partner - Brazil Tel: +55 11 5186 1700 [email protected]

GSL has production and Ronaldo Xavier commercial activities in the US, M&A Transaction Services Partner - Brazil Mexico, Brazil, Argentina and Tel: +55 11 5186 1580 Nicaragua. [email protected]

Ariel del Rivero M&A Transaction Services Director - Argentina Tel: +54 11 4390 2600 [email protected]

Norberto Lucero Tax Services Partner - Argentina Tel: +54 11 4390 2600 [email protected] Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please seewww. deloitte.com/mx/aboutus to learn more about our global network of member firms.