MEXICO – Herdez del Fuerte, an equally-split joint venture between Grupo Herdez and Mexican conglomerate Grupo Kuo, has acquired Libanius (Interdeli and Deli, Dips & Snacks) for 587 million pesos (US$29.4m).
Libanius is a producer of ready-to-eat products of Lebanese origin as well as other products with the flavor of the Mediterranean. The company owns the brands Libanius, and Flavor Y Liguria among others.
Herdez Group is a company focused on the sector of processed foods and ice cream in Mexico and it also has operations in the United States through MegaMex.
In general, the food processor has a portfolio of 1,380 products that it markets under brands such as Cielito Querido Café, Doña María, Embasa, Nestlé, Herdez, McCormick, and Nutrisa.
Meanwhile, Kuo Group is an industrial conglomerate that participates in the consumer, chemical, and automotive businesses.
The acquisition is part of the strategy of Herdez del Fuerte to expand its food portfolio with new capacities and brands that generate value.
The joint venture integrates categories such as hummus, dry jocoque, pita bread, goat cheese, tortillas, toast, and Greek yogurt.
Herdez Group noted in a statement that this new line of products will be integrated into the portfolio of the preserves segment, a division where the results of Aires de Campo, Barilla, Búfalo, Del Fuerte, Doña María, Herdez, and McCormick, among others, are consolidated.
“This acquisition strengthens our portfolio of brands. With this acquisition, we now bring to the tables of Mexican families all the flavor of the Mediterranean and we stay close to consumers through innovation,” said Héctor Hernández-Pons Torres, president, and CEO of Herdez Group
Sales of Libanius, which has two plants in Querétaro and more than 300 collaborators, amounted to nearly 473 million pesos in the last 12 months, with an EBITDA margin (operating flow) of 16.2 percent.
While Grupo Herdez posted sales in 2021 of MXN26.1bn, up 8.8%, although profits declined, Kuo Group reported revenue of approximately US$57.3 billion.
Grupo Herdez’s EBITDA dropped 6% to MXN3.9bn and EBIT fell 7.6% to MXN3bn. Net profit was down 12.3% at MXN2.1bn.
Alejandro de la Barreda Gómez, CEO of Kuo Group commented that with this acquisition, the companies strengthen the Herdez Del Fuerte brand portfolio, through a line of authentic foods, focused on new consumer trends that serve a market with high growth potential.
Additionally, Gómez said the companies will take advantage of the strategic, operational, and commercial synergies of their consumer sector.
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