Grupo Lala offers to buy Brazilian dairy company Vigor
August 5th 2017 | Multiple countries | Food and drink | Grupo Lala
On August 3rd Mexico's Grupo Lala SAB de CV have offered to acquire Vigor Alimentos SA, a Brazilian dairy company, in a deal valued at R5.7bn (US$1.7bn). The deal also includes Vigor's fully owned subsidiary, Itambé Alimentos SA.
The Mexican company will initially acquire 91.99% of Vigor's shares from FB Participações, an investment company, and JBS SA, a meat processor. In addition, it may acquire another 8% from Arla Foods International AS in order to increase its stake to 99.99%. Lala will finance the takeover through debt and equity.
Vigor reported revenue of R5bn in 2017. With more than 7,600 employees, 14 plants, 31 distribution centres and 67,000 points of sale, it is one of the leading companies in Brazil. It operates brands such as Vigor, Danubio, Faixa Azul, Serrabella, Leco, Amelia and Itambé.
Lala, which has been on an acquisition spree, has been in talks to buy Vigor for more than a year. It expects this move to help it gain a foothold in Brazil, the largest dairy market in Latin America. With sales of Ps53.5bn (US$2.9bn) in 2016, Lala's recent acquisitions include the Laguna Dairy S de CV's US operations and Productos Lacteos La Perfecta SA, a Nicaraguan dairy company. Lala had said that it planned to invest Ps3.6bn in the near term to expand its business.