Nestle S.A. NSRGY inked a deal with Advent International to buy a majority interest in Grupo CRM, the Brazilian premium chocolate company, for an undisclosed amount.
A couple of publications predicted transaction value to be about R$3 billion ($602.78 million) or R$4.5 billion ($904.18 million), as per Reuters.
Grupo CRM has a direct-to-consumer model and booming online footprint, with over 1,000 chocolate boutiques under the Kopenhagen and Brasil Cacau brands.
The transaction, which will boost the company’s presence in the high-end gifting segment, is anticipated to close in 2024, subject to customary regulatory approvals.
“This acquisition further broadens and strengthens our confectionery presence in Brazil, enabling us to enter the high-end segment. Kopenhagen and Brasil Cacau offer premium chocolates that are highly appreciated by Brazilian consumers. We are pleased that Renata Vichi will continue to lead the company with her deep knowledge and passion for the chocolate business, people and brands. Together, we will explore opportunities to further enhance the company’s unique premium chocolate experience,” said Laurent Freixe, CEO of Zone Latin America.
As of June 30, Nestle had cash and equivalents of CHF4.4 billion.
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Price Action: NSRGY shares closed higher by 0.17% at $116.68 on Wednesday.