Mexico City, Mexico, December 19, 2014 – Grupo Herdez, S.A.B. de C.V. (“Grupo Herdez” or the “Company”) (MSE: HERDEZ, OTC: GUZBY), today announced it has entered into an agreement with Nestlé México, S.A. de C.V. to acquire Nestlé’s ice cream business in Mexico
(“Helados Nestlé”) in a Ps. 1.0 billion transaction.
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, among others, reaching more than 40,000 points of sale across the country.
The acquisition 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 this business unit.
“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.
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 transaction will be funded through existing lines of credit and cash on hand, and is expected to close in the first half of 2015, subject to regulatory approval.