Grupo Herdez to acquire Grupo Nutrisa

Mexico City, January 17, 2013 – Grupo Herdez, S.A.B. de C.V. (“Grupo Herdez” or “the Company”) (MSE: HERDEZ) has entered into a definitive agreement to acquire for cash 67% of the outstanding shares of Grupo Nutrisa, S.A.B. de C.V. (“Nutrisa”) (MSE: NUTRISA), the
leading frozen yogurt company in Mexico, for Ps. 91 per share. The transaction is subject to customary closing conditions and approvals, including those of the Competition Authority and Grupo Herdez’ Shareholders Meeting. Grupo Herdez will launch a cash tender offer for Nutrisa’s remaining outstanding shares in accordance with applicable laws.

Grupo Nutrisa, founded in 1979, is Mexico’s leading manufacturer and retailer of frozen yogurt and branded natural food and health products. Nutrisa has more than 350 points of sale nationwide and a strong leadership position in the growing frozen yogurt segment, as well as a robust portfolio of nutritional supplements and health food, among others, sold primarily under the Nutrisa® brand.

Net sales of Nutrisa for the twelve months ended September 30, 2012 were Ps. 1.124 billion, with five year CAGR of 15.9%. EBITDA was Ps. 168 million (5-year CAGR of 31.9%), representing an industry-leading margin of 14.9%. Nutrisa’s sales and EBITDA represent 10%
and 9% of those of Grupo Herdez, respectively, for the 12 months ended in September 30, Nutrisa carries no debt.

“The performance and profitability of Grupo Nutrisa has been consistently outstanding through the years thanks to strong execution by its dedicated group of associates. This strategic transaction transforms our playing field with a dynamic new channel, attractive categories and a leadership position in the fast-growing natural and health food segment. We look forward to unleashing the power of the Nutrisa® brand with our customers and introducing these products to millions of new consumers,” said Héctor Hernández-Pons Torres, Chairman and Chief Executive Officer of Grupo Herdez.

Nutrisa will operate as an independent entity and maintain its executive management team. Potential synergies are mainly related to supply chain efficiencies, while growth opportunities lie with the expansion of introducing the Nutrisa® brand in channels where it is not currently available, and the scale of the new natural products portfolio.

2020

  • 2020: We launched the first edition of Semillero Nutrisa. Together with Nutrisa and the Victoria147 business academy for women, we invited women entrepreneurs to participate in a training program to improve the management of their businesses and have the potential to become part of our supply chain.

We established our first technological alliance with Google, which will allow us to accelerate the digital transformation of Grupo Herdez through the use of Google Cloud Platform tools such as BigQuery ML, Looker, among others.

Through the Herdez® brand and Aires de Campo® we joined the “Sowing a New Normality” initiative, promoted by the civil society organizations Ríos Tarango and Ectágono, which aims to increase the vegetation cover of the environmentally valuable area Barranca de Tarango.

  • 2021: We developed the Group’s second proprietary e-commerce platform, with the Nutrisa® online store.

We updated the apps through which we manage the loyalty programs of our retail brands, Cielito Querido Café® and Nutrisa®, improving our customers’ in-store experience.

During the year, 15 formulas had their nutritional profile strengthened by reducing some critical added nutrients (sugars, sodium and saturated fats).

  • 2022: We expanded our capabilities into new categories through the acquisition of Interdeli and Deli, Dips & Snacks. Integrating brands such as Libanius, Flaveur, Liguria and Señor Cactus into our portfolio.

We Issued the first sustainability bond through which we
committed to a 25% reduction in our water consumption.

Together with our partner McCormick & Company, Inc. we
brought the most iconic Mexican cuisine to the tables of the United Kingdom
through meal kits, sauces and condiments under the Herdez® brand.
  In less than a year, we obtained a 5.5% shelf
share in the Tesco supermarket chain.

We consolidated the integration of Chilim Balam® into retail brands, a leading brand in the snack segment