Nutresa to acquire Chilean food producer Tresmontes Lucchetti

Colombia-based food manufacturer Nutresa has entered into an agreement to acquire Chilean food and beverage producer Tresmontes Lucchetti in a deal worth $758m, to expand its international presence.

Tresmontes Lucchetti is involved in the manufacture of pastas, snacks, edible oils, soups, desserts, cold instant beverages, tea, juices and coffee under the Lucchetti, Talliani, Gold, Monterrey, Kryspo, Miraflores, Lux, Livean, Naturezza and Zuko brands.

The company operates 11 facilities – nine in Chile, one in Peru and one in Argentina – as well as 15 distribution centres – ten in Chile and five in Mexico. It employs around 2,500 people.

Tresmontes Lucchetti reported revenues of $440m and an EBITDA of $60m in 2012.

Nutresa stated that combining with Tresmontes Lucchetti, which has an extensive sales network in Central America, allows the company to consolidate its sales network to further develop markets in the region.

In addition, the acquisition will add new categories and recognised brands to Nutresa’s existing businesses and enable it to enter categories with high commercial dynamics.

Nutresa plans to finance the acquisition with its own cash or with banking credit lines that already have been established.

MBA Lazard acted as financial advisor to Nutresa in this transaction.

Nutresa CEO Carlos Enrique Piedrahíta Arocha said that the acquisition provides the company with entry into the Chilean market and participation in new categories.

"In turn, we will enhance our international activities with particular strength in Mexico."

"Moreover, we wish to highlight the contribution to profitability that will provide Grupo Nutresa with historic levels similar to or higher than those of our organisation," Arocha added.

Headquartered in Medellín, Colombia, Nutresa is engaged in the production and distribution of cold cuts, biscuits, chocolates, coffee, ice creams, and pasta and markets its products under approximately 70 brands in 65 countries worldwide.