Mexico-based dairy giant, the Lala Group, is looking to seal a deal to buy control of Brazilian company Vigor Alimentos tomorrow with a Board of Directors meeting scheduled to finalize the acquisition.
The largest dairy firm in Latin America, Lala has announced that is has concluded the process of negotiations aimed at buying Vigor, which includes its shareholdings in Itambé Alimentos, S.A.
It said in a statement that a proposal to acquire Vigor from investment holding company J&F Investimentos SA, as well as a borrowing plan and potential share offering, would go before the Board.
Although it is still subject to company approval, Lala confirms the commitment to acquire the Brazilian producers of fresh cheese and yogurt.
“The purchase project will be presented for approval to the Board of Directors of Lala in a session called for this purpose on Thursday, August 3, 2017,” says the Lala statement.
Founded in 1917, Vigor is a leader in the Brazilian dairy market focused on value added products and innovation. It has more than 7,600 employees, 14 production plants, 31 distribution centers and 67,000 points of sale in Brazil.
In addition, it has a wide portfolio of dairy products, mainly yogurt, cheese and other dairy products marketed under the trade names Vigor, Danubio, Blue Band, Serrabella, Leco, Amelia.
Itambé Alimentos S.A. is a Brazilian dairy company with more than 66 years in the market. It has a complete portfolio of dairy products, with its main products being milk powder, condensed milk, dulce de leche, yogurt, derivatives and UHT milk, under the Itambé brand.
Grupo Lala, a Mexican company focused on the healthy and nutritious food industry, has more than 65 years of experience in the production, innovation and commercialization of milk, dairy products and beverages.
Lala operates 22 production facilities and 160 distribution centers in Mexico, the US and Central America, with more than 34,000 employees. It also operates a fleet that exceeds 7,000 units for distribution of its more than 600 products which reach more than 500,000 points of sale.
This transaction is subject to certain common conditions, including approval of the Board of Directors and of the Shareholders’ Meeting of Grupo Lala, as well as conditions like government authorizations, shareholder agreements and other contractual conditions.
In addition, Lala will obtain financing and possible capitalization as part of the financial package for these acquisitions says the company.
Source: Food Ingredients First
