Colombia-based Nutresa has agreed to acquire Chile-based food and beverage producer Tresmontes Lucchetti for $758m, as part of its efforts to expand its international footprint.
Tresmontes Lucchetti is involved in the manufacture of pastas, snacks, edible oils, soups, desserts, cold instant beverages, tea, juices, coffee. The company's cold instant beverage business has a strong presence in Mexico, the United States, Central America and South America.
The company operates eleven facilities - nine in Chile, one in Peru and one in Argentina. It also has 15 distribution centers: ten in Chile and five in Mexico and employs 2,500 people across its operations. In 2012, the company reported sales of $440m, with an EBITDA of $60m.
Nutresa stated that it will finance the transaction with its own resources and sufficient bank credit facilities and the acquisition will add new categories as well as recognized brands to its current businesses.
Nutresa CEO Carlos Enrique Piedrahíta Arocha said that the acquisition of Tresmontes Lucchetti allows the company to enter into the Chilean market while participating in new categories and cold instant beverages.
"In turn, we will enhance our international activities with particular strength in Mexico. Moreover, we wish to highlight the contribution to profitability that will provide Grupo Nutresa with historic levels similar to or higher than those of our Organization," Arocha added.
With this acquisition, Nutresa will be present in 15 countries from the US to Chile with operations in the US, Mexico, Guatemala, El Salvador, Nicaragua, Costa Rica, Panama, the Dominican Republic, Colombia, Venezuela, Ecuador, Peru, Argentina and Chile, as well as Malaysia.
MBA Lazard is acting as Nutresa's financial adviser in this transaction which is expected to be completed in late September or October of this year.
