Mexican dairy company Grupo Lala is nearing an agreement to acquire Brazil-based dairy and food firm Vigor Alimentos.
Grupo Lala completed the negotiation process to complete the purchase of Vigor Alimentos, including its shareholding in Itambé Alimentos.
The Mexican firm is putting the proposed acquisition before its board of directors and said it will convene a conference call for investors on 4 August 2017 if the deal is approved.
The deal is subject to governmental authorizations, shareholder agreements and other inherent contractual conditions.
Grupo Lala is engaged in the production and marketing of milk and other dairy products for over 65 years.
The company operates 22 production plants and 160 distribution centers across Mexico, US and Central America. It employs over 34,000 people.
Lala and Nutri Leche are the two main brands of Grupo Lala. Its products are delivered to nearly 500,000 points of sale.
Vigor, which was established in 1917, has a workforce of more than 7,600 employees, 11 milk collection centers, 14 production plants, 31 distribution centers and 67,000 points of sale in Brazil.
The Brazilian dairy company produces a range of dairy products, including yogurt, cheese and other dairy products which are marketed under the Vigor, Danubio, Faixa Azul, Serrabella, Leco and Amelia brands.
Itambé Alimentos produces powdered milk, condensed milk, milk caramel, yogurt, dairy products and UHT milk, under the Itambé brand.
