MEXICO CITY, May 30, 2016 /PRNewswire/ -- Grupo LALA, S.A.B. de C.V. (BMV: LALA B) ("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. ("Laguna") certain assets related to Laguna's branded business in the U.S. (the "Branded Business") 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.
Please click on the following link for a PDF file containing the full text of the press release: GRUPO LALA ANNOUNCES ACQUISITION PROCESS
Please click on the following link for a PDF file containing the full text of the press release in Spanish: GRUPO LALA ANUNCIA PROCESO DE ADQUISICIÓN
Grupo LALA, a Mexican company focused on healthy and nutritious food, has over 65 years of experience in producing, revitalizing and marketing milk, dairy products and drinks with the highest quality standards. There are 22 LALA production plants in operation and 166 distribution centers in Mexico and Central America, and it has more than 33,000 team members. LALA operates a fleet of more than 7,000 vehicles to distribute their 600+ products, which are delivered to over 550,000 points of sale. LALA´s portfolio it´s led by its two flagship brands LALA® and Nutri Leche®.
For more information, visit: www.grupolala.com
Grupo LALA is listed on the Mexican Stock Exchange under the ticker symbol "LALA B"
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SOURCE Grupo LALA, S.A.B. de C.V.