Food and beverage giant Nestlé has purchased a majority stake in Terrafertil, a South American organic food company that manufactures plant-based foods and snacks.
Financial terms of the transaction have not been disclosed by the two parties.
Nestlé said that the transaction will expand its footprint in a fast-growing category in Latin America, the US and the UK.
Terrafertil is among the largest buyers of the goldenberries, which are known to have high content of vitamins and antioxidants. The company's Nature's Heart features a range of superfood snacks.
Ever since, it was founded in 2005 in Ecuador, Terrafertil has expanded its footprint in Mexico, Colombia, Peru, Chile, and the UK.
Last year, the organic food company forayed into the US through the acquisition of Essential Living Foods.
Nestlé Zone Americas CEO Laurent Freixe said: “We are excited to welcome Terrafertil and its employees to the Nestlé family. Its natural, organic and healthy products fully support Nestlé’s purpose to enhance quality of life and contribute to a healthier future.
“This investment allows us to strengthen our presence in fast-growing categories such as plant-based foods, beverages and healthy snacks, known as ‘superfoods’ due to their high natural nutrient content.”
Currently, Terrafertil has four processing facilities located in Ecuador, Mexico, Chile and Colombia, and has a workforce of 400 people.
The transaction will cover all of the organic food company’s operations and assets across the seven countries where it has operations. Terrafertil will be operated as an independent entity and will be continued to be managed by its founders.
Terrafertil founding partners David, Raul and Daniel Bermeo said: “Nestlé brings several benefits and synergies. Beyond expanding our presence and distribution around the world, we will capitalize on its experience in areas such as Research and Development, marketing knowledge, and operational efficiencies.
“Above all, we share Nestlé´s commitment to society, to the communities where it operates and the environment.”
Last month, Nestle signed a $2.8bn deal to divest its US confectionery business to Italian confectionery giant Ferrero.
