Castillo Hermanos has entered into a definitive agreement to acquire Harvest Hill Beverage from Brynwood Partners to significantly expand its presence in the US.
Building on Harvest Hill’s established beverage platform and diverse portfolio of iconic brands, the acquisition will enhance Castillo Hermanos’ existing US business unit.
Founded in 1886, Castillo Hermanos is a family-owned company that operates in 35 countries, offering brands such as Del Frutal, Gallo Beer, and Raptor Energy Drink.
The acquisition is supported by a strategic investment from Centerview Capital and is subject to customary closing conditions and regulatory approvals.
Centerview Capital founding partner Jim Kilts said: “We’ve been impressed by Castillo Hermanos’ business execution and brand portfolio and Harvest Hill’s commercial and operational success.
“Both companies have proven track records of acquiring and integrating assets and our investment underscores the potential of this transaction.”
Castillo Hermanos chairman Juan Monge Calderón said: “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.”
Harvest Hill offers a portfolio of beverage brands, including Fruit2O, Juicy Juice, Little Hugs, Nutrament, SunnyD, and adult beverage brands Daily’s and SunnyD Vodka Seltzer.
The company operates six manufacturing facilities across the US and has extensive distribution channels with major US retailers.
As part of the acquisition, Harvest Hill’s entire workforce of more than 1,000 employees, including its management team, will continue in their positions.
They will become a part of Castillo Hermanos’ workforce of over 20,000 employees.
Holland & Knight served as legal advisor to Harvest Hill on this transaction.
Citi served as financial advisor, lead arranger and bookrunner, and Skadden, Arps, Slate, Meagher & Flom as legal advisor to Castillo Hermanos.
Harvest Hill president and CEO Robert Mortati said: “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.
“Together, we will be able to scale our businesses, enhancing the presence of our brands across the beverage marketplace.”
Castillo Hermanos CEO Roberto Lara said: “We are thrilled to welcome Harvest Hill to the Castillo Hermanos family and want every one of their employees to be part of our strategy for expansion and sustained growth.
“We look forward to working closely with Harvest Hill’s experienced leadership team to unlock key growth opportunities, leveraging their manufacturing facilities, distribution network, and understanding of the beverage category in the US.”
