TRAXIÓN ANNOUNCES THE EXECUTION OF AN AGREEMENT TO ACQUIRE MEDISTIK

Mexico City, March 17, 2022 – Grupo Traxión, S.A.B. de C.V. (“Traxión” or the “Company”) (BMV: TRAXION A), a leading transportation, mobility and logistics company in Mexico, announces today that it has executed an agreement to acquire MEDISTIK, one of the most important 4PL companies of healthcare products logistics solutions, through an asset light approach and within a resilient industry. MEDISTIK offers highly specialized services, has a sound leadership position, and more than 25 years of experience in the sector. The transaction is subject to regulatory approvals, which TRAXIÓN expects to obtain in the following months.

MEDISTIK has more than 36,000 square meters (~388,000 sq. ft.) of highly specialized logistics space in 6 main warehouses (4 in the State of Mexico, 1 in Monterrey, and 1 in Guadalajara), plus 10 cross-dock facilities in key locations, employs 431 staff members, and completes more than 190,000 deliveries per year for more than 50 AAA clients, with a 99.9% efficiency.

The acquisition price was Ps. 1,567 million in cash. For 2022, MEDISTIK forecasted revenues of approximately Ps. 625 million and an EBITDA margin around 35%. Furthermore, TRAXIÓN expects immediate synergies to be realized as MEDISTIK is incorporated to its platform, together with operating, commercial and financial efficiencies that will improve the transaction’s profitability. The transaction price could be subject to change at time of closing; however, such potential change is not expected to be material.

With this acquisition, TRAXIÓN integrates the pharma vertical to its 4PL and last-mile logistics services, in addition to retail and e-commerce. MEDISTIK represents an unparalleled value proposal mainly due to its client service focus, state-of-the-art infrastructure, cost optimization model, total product visibility, and comprehensive quality assurance processes.

“With the integration of MEDISTIK, TRAXIÓN enters the healthcare logistics business through a successful and profitable company, with a sound leadership position, and presents us with a unique growth opportunity within a highly specialized logistics sector. MEDISTIK complies with all our acquisition and integration criteria. It is a key piece for our expansion strategy within the supply chain, with an asset light approach, with many synergies and efficiencies that will contribute to create further long-term value.” – Commented Aby Lijtszain, Founder and Executive President of TRAXIÓN.

“In Tresalia we are very pleased with the sale of MEDISTIK to TRAXIÓN. MEDISTIK’s mission is to save and improve lives through the design, implementation and operation of supply chain management solutions that boost our clients’ performance. We truly believe that MEDISTIK, under TRAXIÓN’s leadership, will move forward with such mission, its successful path, and will continue to provide the best service and care to our clients.” – Commented María Asunción Aramburuzabala, Chairwoman of Tresalia Capital.