Sector News

Lala Group moving forward in Vigor deal

August 7, 2017
Consumer Packaged Goods

The Lala Group’s Board of Directors has agreed to propose to company shareholders the acquisition of up to 100 percent of the shares of Brazilian dairy giant, Vigor Alimentos, S.A. and the shares of Itambé Alimentos, S.A. for an implied value of R$5,725m (US$1.84bn).

Earlier this week, FoodIngredientsFirst reported how the Mexican-based Lala Group, was looking to seal a deal to buy control of Vigor Alimentos with a Board of Directors meeting scheduled to finalize the acquisition. You can read the full story here.

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.

Today (Aug 4), the Group has further announced that as a first step towards completing the transaction, Lala, FB Participações and JBS S.A. entered into a share purchase agreement pursuant to which Lala will acquire, subject to its terms and conditions, 91.99% of the shares of Vigor.

In addition, as part of the transaction, Lala may acquire from Arla Foods International an additional 8 percent of Vigor’s shares, increasing Lala’s participation to 99.99 percent.

The transaction is subject to certain approvals by Grupo Lala’s shareholders’ meeting, governmental authorizations, shareholder agreement and other contractual conditions.

Substantial provisions for a successful integration and mitigation of risks have been included in the share purchase agreement.

Financing for the transaction will include a bridge loan, followed by a combination of long-term debt and additional equity of approximately US$550 million, of which an estimated US$315 million will be committed by LALA’s current shareholders, adds the group.

Source: Food Ingredients First

comments closed

Related News

February 25, 2024

The Body Shop faces store closures, layoffs and ingredient surplus after Aurelius acquisition

Consumer Packaged Goods

Recent reports reveal The Body Shop will shut up to half of its 198 stores in the UK and cut the size of its head office, incurring hundreds of job losses. According to the firm overseeing the restructuring of the beauty retailer, closures will begin this Tuesday.

February 25, 2024

Kroger and Albertsons face lawsuits to block $24.6bn merger – Bloomberg

Consumer Packaged Goods

Amidst brewing tensions, the US Federal Trade Commission (FTC) and a coalition of states are poised to take legal action as early as next week, aiming to prevent grocery giant Kroger’s $24.6 billion acquisition bid for Albertsons, Bloomberg reported.

February 25, 2024

Diageo reportedly in talks to offload trio of brands, including Pimm’s

Consumer Packaged Goods

The owner of Guinness and Baileys has hired financial service group Rothschild to explore the sale, which includes Pimm’s, fruit liqueur brand Safari and Pampero rum. Each brand could be offloaded individually or as a three, according to Sky News.

How can we help you?

We're easy to reach