Cameron’s Coffee, the sixth coffee factory in Nutresa

Yesterday the transaction was announced that represents 113 million dollars and that was closed after the purchase of 100% of CCDC OPCO Holding Corporation, owned by Goldner Hawn, L.P. —Private capital fund of Minneapolis, Minnesota — and has 40 years of business experience.

Nutresa stays with a company that invoiced 72 million dollars in the last 12 months, as of July 31, and that is characterized by producing and grinding coffee, and distributing products in different formats: in bags and capsules.

The holding company "It strengthens its international presence in a category of high growth and dynamism globally that offers multiple opportunities for effective innovation and generation of sustainable value over time," said its president Carlos Ignacio Gallego, through a press release, because yesterday he was out of the country to seal the transaction.

The business implies that the Colombian company completes six coffee factories: the Colombian Coffee Industry has two, located in Medellín and Bogotá; Tropical Coffee Company, has one in Santa Marta as well as Allied Industries, in Ibagué, and Dann Kafee, in Malaysia.

Bancolombia analysts, led by Jairo Agudelo, They said in a document that "with this transaction, more than 50% of the sales of the Nutresa coffee division would come from foreign markets."

In addition, the movement is in line "with the guidance provided by management in terms of regions, divisions and target transactions", as well as "diversification of Nutresa in a market of high coffee consumption rates" (see Report) .

This acquisition comes at a time when the coffee business represented 10.9% of the Group's total sales in 2018, closing at 986,000 million pesos, according to the Results Report at the end of the year.

The local market represents 63.2% of the segment, with 623,000 million pesos; while the international, 36.8%. Until last year, the highest concentration of sales was in roasted or ground coffee (55%) and to a lesser extent the soluble format.

Gallego said that "this operation is a new step in the path of internationalization and is aligned with our goal of improving the quality of life of consumers through conscious brands, affordable products, and innovative and differentiated value propositions."

The task is "to strengthen Colombia's brand abroad and that this move continues to allow Nutresa to consolidate in the food business, regardless of jurisdiction," said the expert in companies, Francisco Cubillos.

The United States is not a new market for Nutresa, in fact at the end of 2018 it represented 23.7% of the coffee business, the second most important; followed by Ecuador, with 3.7% and Central America, which represented 2.4%.

Cameron’s Coffee is expected to continue operating locally “while retaining its entrepreneurial spirit and agility”.