Grupo Herdez has agreed to acquire Nestle’s ice cream business in Mexico, Helados Nestle, in a deal worth MXN1bn (US$68.7m).
The acquisition of Helados Nestle will increase Herdez’s “scale and capabilities” in the frozen sector and “practically doubles” the size of the group’s ice cream business, Herdez said.
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The deal includes an exclusive long-term licence to market Nestle’s ice cream brands in Mexico, such as Nestle, Mega, PelaPop and eXtreme. It also includes an ice cream manufacturing facility in Lagos de Moreno, Jalisco, and distribution equipment.
Helados Nestle’s full management team will transfer to Herdez, the company added.
Helados Nestle currently reaches more than 40,000 points of sale across the country and the deal will strengthen Herdez’s presence in traditional retail channels, CEO Héctor Hernández-Pons Torres emphasised.
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“This acquisition will deliver significant synergies with our Nutrisa business and increase our sales and leadership position in the growing and high-potential ice cream category. We look forward to welcoming the Nestle ice cream team and are excited about this unique opportunity to serve the youth segment, and strengthen our direct mom and pop retail channel in Mexico,” he said.
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By GlobalDataThe transaction will be funded through existing lines of credit and cash on hand. It is expected to close in the first half of 2015, subject to regulatory approval.
