Sigma Alimentos has announced its plan to acquire a controlling stake in Los Altos Food Products, a US-based manufacturer of Hispanic cheese and cream.
The financial details of the transaction were not revealed.
Los Altos Food Products specializes in producing genuine Mexican cheese products aimed at North American consumers who enjoy Mexican cuisine. The company runs a single plant near Los Angeles, California, and employs over 260 individuals who will be transferred to the new company as per Sigma’s statement.
The yearly revenue of Los Altos Food Products amounts to around $100 million.
“This transaction is aligned with Sigma’s strategy and will allow us to continue growing the core business by strengthening our position in a rapidly growing market that is gaining space in mainstream consumption,” said Rodrigo Fernandez, Sigma’s CEO. “I’m confident that the sum of Los Altos and Sigma will allow us to better satisfy the needs of our customers and consumers. This transaction also enhances our existing network with production capacity on the West Coast.”
Sigma, which is a division of the Mexican conglomerate Alfa, has a global presence and possesses over 100 food brands in the categories of meat, dairy, and plant-based foods.
With a global footprint that spans across 18 countries in the Americas and Europe, the company boasts of 65 manufacturing facilities and a workforce of 44,000 employees.
“Today, Sigma takes another step to expand its presence in the US and continue increasing capacity in the Hispanic dairy market. We are looking forward to welcoming all Los Altos employees to Sigma and embarking on a new journey, together,” Jesus Lobo, the CEO of Sigma’s US operations, said.
Sigma’s EBITDA fell 12% in to $652m in 2022 “as growth in the Americas was more than offset by a decline in Europe amid unprecedented cost pressure”. The company’s annual revenue increased 9% to $7.4bn.
