Grupo Herdez has agreed to acquire Nestlé’s ice cream business in Mexico, Helados Nestlé, for around MXN1bn ($68.7m).
The acquisition covers an ice cream manufacturing facility in Lagos de Moreno, Jalisco, as well as distribution equipment and freezers.
This investment will allow Grupo Herdez to increase its scale and capabilities in the frozen business segment and practically double the size of the ice cream category within the portfolio.
Grupo Herdez chairman and CEO Héctor Hernández-Pons Torres said: "This acquisition will deliver significant synergies with our Nutrisa business and increase our sales and leadership position in the growing and high-potential ice cream category.
"We look forward to welcoming the Nestlé ice cream team and are excited about this unique opportunity to serve the youth segment, and strengthen our direct mom & pop retail channel in Mexico."
Scope of the transaction also includes an exclusive long-term license to market and sell Nestlé's ice cream brands in Mexico.
Helados Nestlé offers a wide range of ice creams and frozen novelties under various brands such as Nestlé, Mega, PelaPop and eXtreme.
As per the agreed terms, Nestlé's full management team will join Grupo Herdez to lead this business unit.
The transaction, which is subject to regulatory approval, is expected to be completed in the first half of 2015.
Image: Helados Nestlé offers a wide range of ice creams and frozen novelties. Photo: courtesy of rakratchada torsap / FreeDigitalPhotos.net.
