CCPR to exercise right to buy Itambé as part of Grupo Lala’s Vigor takeover
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.
