Upfield Colombia acquires Unilever’s production plant in Cali
Upfield is set to strengthen its operations in Colombia with the acquisition of Unilever's food-processing plant located in Cali (Valle del Cauca).
Under the terms of the deal, Unilever will gradually withdraw its operation from the factory, while Upfield, a multinational producer of margarine, butter and other spreads, will begin to increase its activities in Colombia. The sale includes the real-estate assets (property), the machinery and equipment necessary for the production of spreads, and the transfer of employees working on this specific line of business.
The transaction is set to close in the last quarter of 2022.
Upfield is the largest plant-based consumer packaged goods company in the world, operating in 95 countries. This latest acquisition gives the company an additional 3,000 tons of product-processing capacity and will also allow it to supply other countries in the region, such as Ecuador and Peru.
Unilever is a British multinational consumer goods company that produces food, condiments, ice-cream, tea, coffee, cleaning products, water and air purifiers, pet food, beauty and personal care products. It has large production centers in Brazil and Mexico. Colombia has already become the third largest hub in the region.
The acquisition reinforces Upfield's commitment to the Colombian market, makes Colombia the center of Upfield's operations for the South American region and allows Unilever to relocate its operations to its new facility under construction in Palmira (Valle del Cauca).
Its deal with Upfield will provide a boost of the local economy, generating employment and innovation in Cali and strengthening the country's export capacity.
The transaction is part of a global agreement whereby the parent companies of both manufacturers buy and sell assets from each other on a worldwide basis.
Unilever Colombia was advised on the transaction by the law firm Posse Herrera Ruiz.
Posse Herrera Ruiz' team was led by partner José Alejandro Torres, alongside associates Sergio Salazar, Andrés Paz, Erika Serrano and Héctor Otálora.
Upfield Colombia was advised by Dentons Cardenas & Cardenas Abogados, whose team was led by partner Mauricio Borrero, assisted by associates Laura Mateus and Ana López.
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