Itambé is the largest dairy cooperative in Brazil.
Lala has now said the Cooperativa Central dos Produtores Rurais de Minas Gerais Ltda (CCPR), which owns 50% of the capital stock of Itambé, has announced its intention to exercise its right of first refusal to acquire 50% of the remaining shares of Itambé, belonging to Vigor.
New scope
Lala said the process for the closure of the Vigor acquisition continues, including negotiations with Arla Foods International to acquire 8% of Vigor's shares, thereby increasing its stake to 99.9%.
In the event that CCPR satisfactorily completes the acquisition of the 50% of Itambé’s shares, the new scope of the transaction would be the acquisition of up to 100% of Vigor's shares, for a net implied value of R$4.325bn ($1.4bn); considering estimated net sales for 2017 of R$2.407bn ($767m) and an estimated EBITDA of R$ 200m ($63.7m).
Lala said its interest is in the value added dairy segment, where Vigor has widely recognized brands, with a strong presence in the fast-growing segments.