Lala dairy, Mexican, Nicaraguan purchase Eskimo

Mexican Lala Foods, which operates mainly dairy, today announced that it has entered into a deal to buy the assets of Nicaraguan Eskimo S.A. and its affiliates in Central American countries. The value of the transaction was not revealed. According to a statement from the Mexican company, the acquisition strengthens and expands the business of Lala in Central America.
The Eskimo mainly produces ice cream, milk and yogurt. In Nicaragua, largest market of Eskimo, the empresea is a leader in the dairy industry and "the Eskimo brand is synonymous with ice cream," according to the statement.
The company, which closed 2013 with revenues of $ 54.5 million, operates a distribution network that serves more than 15 thousand sales points, with operations in Honduras, El Salvador and Costa Rica. According to Credit Suisse, the Eskimo adds 1.6% to consolidated sales of Lala.
Archimedes Celis, CEO of grupo Lala commented, in the statement: "this acquisition is another affirmation of our interest in expanding Lala's operations in Central America, where we are confident that our business model can be replicated successfully". According to him, the ice cream category represents an opportunity to join adjacent operations as part of a growth strategy that has already been enacted by Lala.
The acquisition will be completed as soon as he obtains the approval of regulatory agencies, informed the Mexican company.
Lala, which grossed 43 million pesos in 2013, has already tried to enter the Brazilian market in recent years, but without success. The last attempt was buying dairy assets put up for sale by the BRF, which ended up being acquired by French for Lactalis.