Grupo LALA taking over Laguna Dairy assets

30-May-2016 - Last updated on 31-May-2016 at 11:09 GMT

Frusion and Promised Land are among the brands Grupo LALA will be acquiring from Laguna Dairy.

Mexican dairy company Grupo LALA has announced that it has entered into an agreement to acquire certain assets from Laguna Dairy's branded business in the US for $246m.

The branded business will sell approximately $200m in 2016 and has achieved double digit growth for the past two years. The branded portfolio includes products in high-growth segments such as, mainstream drinkable yogurt under the LALA and Frusion brands and specialty milks under the Promised Land and Skim Plus brands.

The acquisition includes three production plants and more than five brands.

LALA says that the transaction will also provide a local platform to expand the presence of LALA’s Mexican product line for the large US Hispanic segment.

Scot Rank, Grupo LALA's CEO, said the acquisition meant LALA was obtaining modern production facilities, growing businesses in value added categories, and a local platform for growth in the world's largest dairy market.

The all-cash transaction is subject to customary closing conditions and regulatory clearances.