We are reiterating our Buy rating, raising our price target to $30 (from $22.50) and increasing our 2026 projections for Betterware de Mexico after the company announced the signing of a definitive agreement to purchase Tupperware’s operating assets in Latin America (“Tupperware LatAm”) for US$250 million in cash and stock, less than 1X projected 2025 revenue and 3.1X EBTDA. We believe the acquisition, which is scheduled to close during 1H26, will be immediately accretive and offer the potential for material further top and bottom-line upside; further, Tupperware LatAm offers immediate market presence in new markets such as Brazil, further share gains in Mexico and two factories to serve key markets. Given Betterware management once ran Tupperware Americas, we believe they have the vision to restore the brand to its prior glory (almost 45% larger in 2022) and drive even higher returns. Management also stated there will be no change to the dividend policy post the close of the Tupperware transaction. We view this deal as a highly compelling transaction and are providing a conservative updated 2026 projection and raising our BWMX target price to $30, or 11.7X our new 2026 EPS projection.
