LALA Group Mexico closes deal in Brazil

LALA Group Mexico closes deal with Brazilian dairy market company, reported “El Universal”.

LALA Group has closed the negotiation process to purchase Brazilian company Vigor Alimentos, including the stock shares of Itambé Alimentos.

“The acquisition project will be presented for its approval to the Lala board of directors during a meeting held on August 3,” said the company in a statement sent to the Mexican Stock Exchange (BMV, in Spanish).

According to Reuters, LALA offered 5 thousand 700 millions of Brazilian reals (one billion and 800 million American dollars) to the major shareholders of the company, but the exact amount of the transaction wasn’t specified.

Vigor is a company on the Brazilian dairy market, focused on aggregated value products and innovation, it has more than 7 thousand 600 employees, 11 storage centers, 14 production plants, 31 distribution centers and 67 thousand points of sale in Brazil.

Itambé Alimentos, also a Brazilian dairy company, has more than 66 years on the market and has a dairy product portfolio, which includes powdered whole milk, condensed milk, caramel spread, yogurt, dairy and UHT milk.

“This transaction is subjected to certain conditions, including the approval of the board of directors and the shareholder’s meeting of LALA, governmental authorizations, shareholder agreements and other inherent contractual conditions,”.

LALA will obtain financing and possible capitalization as part of the financial package for these acquisitions.

Source: http://www.eluniversal.com.mx/