Grupo Herdez to Buy Nestlé Ice Cream Assets in Mexico
Grupo Herdez has entered into an agreement to acquire the ice cream business of Nestlé México (Helados Nestlé) for Ps. 1.0 billion, or approximately $68.7 million. The transaction, subject to regulatory approval, will be financed through existing lines of credit and cash on hand.
Helados Nestlé has a leading brand portfolio in ice cream and frozen novelties, particularly in the children’s segment, including the Nestlé, Mega, PelaPop and eXtreme brands. Product distribution reaches more than 40,000 points of sale across the country.
The deal includes an ice cream manufacturing facility in Lagos de Moreno, Jalisco, distribution equipment and freezers, as well as an exclusive long-term license to market and sell Nestlé’s ice cream brands in Mexico. Under terms of the agreement, Nestlé’s full management team will join Grupo Herdez to lead the business unit.
The addition of Helados Nestlé enables Grupo Herdez to increase its scale and capabilities in the frozen business segment and practically doubles the size of the ice cream category within the portfolio.
“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,” said Héctor Hernández-Pons Torres, chairman and chief executive officer of the company.
About Grupo Herdez
Grupo Herdez is a leading producer of shelf-stable foods and frozen yogurt in Mexico, and a major player in the Mexican food category in the United States. The company participates in a wide range of categories including burritos, coffee, guacamole, frozen yogurt, gelatins, homemade salsas, honey, jam, ketchup, mayonnaise, mini tacos, mole, mustard, organic foods, pasta, spices, tea, tomato puree, tuna and vegetables. Its product lines are commercialized through a wide portfolio of brands, including Aires de Campo, Barilla, Chi-Chi’s, Del Fuerte, Don Miguel, Doña María, Embasa, Herdez, La Victoria, McCormick, Nutrisa, Wholly Guacamole and Yemina. Grupo Herdez has 14 plants, nine distribution centers, seven tuna fishing vessels, and a workforce of more than 8,000 people.