Hunton & Williams Represents Promerica Financial Corp in Acquisition of Citi Consumer and Banking Business in Guatemala
September, 2015 - Miami, Florida
Hunton & Williams LLP advised Promerica Financial Corp. (Promerica) in its acquisition of Banco Citibank de Guatemala, S.A. and three affiliate entities, through which Citibank operates its consumer and banking business in Guatemala.
The deal, announced September 17, 2015, will allow Banco Promerica Guatemala, Promerica's Guatemalan subsidiary, to absorb the Citi business being acquired and increase its total assets in Guatemala to US$1.4 billion and 100 banking branches, resulting in a leading position in the Guatemalan credit card and consumer banking business. Banco Promerica Guatemala is currently one of the banks with the highest rates of growth and profitability in the Guatemalan financial sector, with total assets of US$609 million as of June 30, 2015. The transaction, expected to close in the first quarter of 2016, is subject to regulatory approval.
“This transaction is transformational for Promerica in the region: gaining significant market share in Guatemala and a stronger foothold in the credit card business,” emphasized Fernando C. Alonso.
David R. Yates, added: “The quality of assets and operations of Citi in Guatemala were attractive to Promerica and meshed well with its existing portfolio. Promerica was adamant in their pursuit of the transaction as this type of opportunity was very unique in the region.”
The Hunton & Williams team was led by Fernando C. Alonso in Miami and David R. Yates in Atlanta, and included Miami lawyers Stefano D’Aniello, Rail Seoane, and B. Cary Tolley, III; Mark A. Melton in Dallas; and Eric J. Hanson in Atlanta.
Deutsche Bank Securities Inc. was Promerica’s exclusive financial investment adviser. Skadden, Arps, Slate, Meagher & Flom LLP is Citi’s outside counsel on the deal.
About Hunton & Williams LLP
Since our establishment more than a century ago, Hunton & Williams has grown to 800 lawyers serving clients from 19 offices worldwide. We have a strong industry focus on consumer products and retail, energy, financial services and real estate. Our global experience extends to myriad legal disciplines, including bankruptcy, commercial litigation, corporate transactions and securities law, intellectual property, international and government relations, regulatory law, privacy and cybersecurity, and products liability. For additional information visit our website at www.hunton.com. Follow us on Twitter, LinkedIn, and YouTube.
