Castillo Hermanos has entered into an agreement with Brynwood Partners to acquire Stamford, Connecticut-based Harvest Hill Beverage Co., with brands such as SunnyD, Juicy Juice and Little HUG.
The acquisition of Harvest Hill by Castillo Hermanos, a family-owned company founded in 1886, expands its U.S. presence. Castillo Hermanos is partnering with private investment firm Centerview Capital, which has provided a significant investment and will be a strategic partner to help grow the U.S. beverage business.
“In recent years, the company has been working to open itself to the world and bring to life our goal to create global brands that ensure sustained growth and continue to strengthen our leadership,” stated Juan Monge Calderón, chairman of Castillo Hermanos. “This acquisition marks a milestone in our history.
“We welcome the leadership team of Harvest Hill that will join our team and are confident that, together, we will continue to captivate consumers and create world-renowned brands.”
Castillo Hermanos CEO Roberto Lara described the deal as a “key moment in our history.”
“Our trusted and iconic brands, combined with Harvest Hill’s, offer a compelling product assortment to cater to diverse consumer needs,” he said.
Harvest Hill’s nationwide beverage platform and diverse portfolio of national, iconic brands, along with its manufacturing and distribution footprint and relationships with retailers across grocery, mass, club and other channels, will advance Castillo Hermanos’ U.S. route to market.
“Founded on similar values and principles based on respect, quality, innovation and customer and consumer centricity, Castillo Hermanos’ and Harvest Hill’s strategic visions are aligned,” said Robert Mortati, president and CEO of Harvest Hill. “Together, we will be able to scale our businesses, enhancing the presence of our brands across the beverage marketplace.”
In addition, Castillo Hermanos can execute other key value levers, including expanding and introducing beverage brands from its Maravilla business unit to the U.S., lowering production and distribution costs by manufacturing in the U.S. as opposed to importing and potentially introducing new brands to the U.S. market.
All of Harvest Hill’s employees, including the management and leadership team, are expected to retain their jobs as part of the transaction, joining Castillo Hermanos’ more than 20,000 employees.
Terms were not disclosed. The transaction is subject to customary closing conditions and receipt of regulatory approvals.
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