November 20, 2022, 22:07 PM
November 20, 2022, 22:07 PM
Fears of a global economic recession seem to scare the food industries of South America. And the multinational Grupo Gloria, owner of the PIL dairy industry in Bolivia, It has just bought the Chilean company Soprole for $640.2 million.
According to the Management in Peru report, the operation not only involves the acquisition of 100% of the company valued at $210 million, reported by Grupo Gloria in the stock market, but the debts that add up to the difference to reach $us 640.27 million.
Gustavo Rencoret, manager of Legal and Corporate Affairs at Soprole, told his country’s regulatory body thate the divestment process (of Fonterra) comprises several transactions for a total amount of $us 640.27 million.
While the communication sent by Grupo Gloria details that Gloria Foods – JORB signed a contract for the purchase of 100% of the shares of New Zealand Milk (Latam) LTDthe remaining shares of Dairy Enterprises investments and all the social rights of Dairy Enterprises (Chile) becoming Soprole Inversiones and its subsidiaries in the southern country.
The multinational Grupo Gloria, which originated in Peru, came to compete with four giant companies interested in acquiring Soprole. These are the French Lactalis, the Canadian Saputo and a company of Chinese origin, whose name has not been confirmed.
YesHowever, there are still procedures to be fulfilled, among them the authorization from the National Economic Prosecutor’s Office (FNE) of Chile, a regulatory entity similar to the Business Authority in Bolivia and the launch of a Public Offer to Purchase the Shares of Soprole Inversiones.
Present in seven countries
At the time the transaction is closed, Soprole will join Grupo Gloria with operations in Latin America and of which companies such as PIL Andina SA in Bolivia, Swiss Dairy Corporation in Puerto Rico, Gloria Colombia SAS in Colombia, Leche Gloria Ecuador SA in Ecuador, Gloria Foods del Uruguay SA in Uruguay, Gloria Argentina SA in Argentina, and Leche Gloria SA in Peru.
Claudio Rodríguez, executive director of Leche Gloria, indicated that this operation is an opportunity to incorporate a company of the category of Soprole to your business portfolio and will be a source of pride for your food holding company.
“In addition to its market leadership in Chile, the identification and professionalism of its human resources and its excellence in areas such as brand development, innovation and good practices, they will build synergies both in the relationship and in the technical contributions and nutritional evolution, which will not only strengthen our regional food platform, but will also allow us to contribute to socially responsible development with the communities we serve”, he indicated.
A 14 month operation
In September of last year the purchase operation began when Soprole’s shareholders informed the market in Chile about the interest of make divestments in various countries, including Chile.
Thus, a week ago it was indicated that the Gloria group would be a potential buyer of Soprole de Chile.
JP Morgan is one of the investment banks that advise the New Zealand company and sources familiar with the business reveal that the latter they would have already drawn up a short list of potential buyers for Fonterra.
In addition, UBS and Jarden participated were the investment banks that advised the New Zealander.
“Soprole is a very good business, but it does not depend on New Zealand milk or its experience (…) Fonterra is delighted to transfer the Soprole business to a new owner committed to a strong regional focus on growth,” wrote Miles Hurrell, CEO of Fonterra.
