Mexican dairy food producer Grupo Lala has strengthened its operations in central America thanks to the agreement of a deal with Costa Rican company Florida Bebidas for the production, distribution and sale of its products in the country.

The deal will give Lala access to a new market in Costa Rica, via distribution with Florida’s existing logistics network. Florida Bebidas produces and markets food and drinks in Costa Rica, Central America and the US.

The transaction will also guarantee a supply of raw milk, with the support of the Regional Farming Cooperative of Dairy Farmers (Coopeleche), which Lala said would enable it to make its products to high standards.

With the acquisition of a dairy production facility in San Ramón Alajuela, Costa Rica, Lala will be able to keep expanding and boosting its operations in the region, the company added.

The agreement is subject to various closing conditions and regulatory approval. Following completion, Lala, Florida and Coopelech will continue operating independently.

In late May, Grupo Lala acquired certain branded business assets from Laguna Dairy for US$246m in an all-cash transaction. The acquisition includes three production plants and five brands, and is in line with Grupo Lala’s strategy of expanding in branded categories in high growth markets in the Americas.

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By GlobalData