Grupo LALA, a Mexican dairy company focused on healthy and nutritious foods, announced today that it has entered into an agreement to acquire from Laguna Dairy, S. de R.L. de C.V. certain assets related to Laguna’s branded business in the U.S. for US$246mm in an all-cash transaction. This acquisition is in line with Grupo LALA’s strategy of expanding in value-added branded categories in high-growth markets in the Americas.
The Branded Business will sell approximately US$200mm in 2016 and has achieved double digit growth for the past two years. The branded portfolio includes products in high-growth segments such as, mainstream drinkable yogurt under the LALA® and Frusion® brands and specialty milks under Promised Land® and Skim Plus® brands. In the United States, LALA® is the leading brand in the adult drinkable yogurt category and Promised Land and Skim Plus are highly recognized regional super premium milks.
The acquisition includes three production plants and 5+ brands. This transaction will also provide a local platform to expand the presence of LALA´s authentic Mexican product line in the large US Hispanic segment.
Scot Rank, Grupo LALA’s CEO, commented: “This acquisition represents a unique opportunity to enter high growth dairy categories in a key market in the Americas. Through this transaction we are obtaining modern production facilities, growing businesses in value added categories, and a local platform for future growth in the world’s largest dairy market.”
The related party transaction has been approved by Grupo LALA’s independent Audit Committee and Board of Directors. The transaction is subject to customary closing conditions and regulatory clearances.
J.P. Morgan was engaged by the Company to act as financial advisor for the sole purpose of rendering a fairness opinion in connection with the transaction.
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