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After graduating from the MBA program at MIT, Germán Canale and José Pablo Fernández teamed up to launch Domo Capital in 2016, a SF in Mexico through which they have evaluated more than 150 potential middle-market investment targets across various industries in Mexico and the USA. In December 2017, they led the LBO and carve-out of Heineken’s ice facility in Mexico, rebranding it as “Aguafría.” A total of 18 investors participated in the transaction, including Mexican investor Cerralvo.
Aguafría, established in 2017 in Apodaca -although its origins date back to 1890- is the leading manufacturer of ice in Mexico, serving over 6,000 customers across more than 13,000 locations. The company is supported by a vast network of operational resources and assets. At the time Domo Capital acquired it, Aguafría’s EBITDA was approximately US$2M, and the company employed 50 professionals.
Management shifted the company from a product-based business to a logistics-focused company, hiring drivers and vehicles to deliver ice to clients, which allowed it to double its profits and workforce in just two years. Unfortunately, COVID erased this positive progress, putting the business on hold for a year. However, investors regained confidence in the project, reinvesting capital, and eventually, the growth process and acquisitions resumed. In total, Domo Capital raised over US$50M in equity and debt, driving an aggressive growth strategy and acquiring 20 ice businesses over the past years, most of them benefiting from significant seller notes (20 to 60%).
After nearly 7 years running the company, they have just sold Aguafría to Reddy Ice LLC. This marks Reddy Ice’s first international acquisition, securing its position as the largest manufacturer and distributor of packaged ice products. The terms of the transaction were not disclosed, but it is known that Domo Capital delivered a +24% IRR to its investors in less than 7 years, resulting in a MOIC of approximately 4x to 5x.
“Combining the Reddy Ice and Aguafría portfolios brings value to our customers through the expansion of existing international retailers within the grocery, drug, dollar, and mass merchandiser channels. This acquisition is part of our strategic growth agenda for Reddy Ice, and we are thrilled to welcome Germán Canale and the rest of the Aguafría team to the family,” said Lonny Warner, Reddy Ice CEO.
While the companies will continue to operate autonomously within their respective countries, they will leverage best practices to identify and create synergies to ensure continued growth. “We are very excited about the opportunity to be part of such a dynamic team,” said Germán Canale, President of Aguafría.
M&A (vendor): BPBI / Legal (buyer): Nader, Hayaux & Goebel
