A prominent family-owned multinational business group, Castillo Hermanos, has reached a final agreement with Brynwood Partners to acquire Harvest Hill Beverage Company. This acquisition is a strategic move aimed at expanding the company's US operations and leveraging Harvest Hill’s well-established brand portfolio. Supported by Centerview Capital as a strategic partner, Castillo Hermanos aims to significantly enhance its presence in the American beverage sector. The deal encompasses not only brands like SunnyD, Juicy Juice, and Little Hug but also a workforce of over 1,000 employees who will retain their positions.

The transaction signifies a milestone for Castillo Hermanos, marking its ambition to create global brands while maintaining leadership in the beverage industry. Harvest Hill, established in 2014, quickly became a major player through acquisitions such as Juicy Juice and Sunny Delight Beverages Co., making it an ideal candidate for this partnership. Both companies share aligned values focused on quality, innovation, and customer-centricity, promising significant growth opportunities moving forward.

Strengthening Market Presence Through Strategic Acquisition

This acquisition marks a pivotal moment in Castillo Hermanos' history, aiming to expand its reach within the United States. By integrating Harvest Hill's successful product lines into its existing portfolio, Castillo Hermanos seeks to offer a broader range of products that cater to diverse consumer preferences. The collaboration promises to leverage Harvest Hill’s manufacturing capabilities, distribution network, and deep understanding of the US beverage market.

Castillo Hermanos, founded in 1886, has consistently demonstrated its commitment to creating globally recognized brands. With this acquisition, the company aims to build upon its legacy by incorporating Harvest Hill's iconic beverages into its growing portfolio. Roberto Lara, CEO of Castillo Hermanos, expressed excitement about working closely with Harvest Hill’s experienced management team. Together, they plan to unlock new growth opportunities, utilizing Harvest Hill’s robust infrastructure and market knowledge. This integration is expected to result in enhanced product offerings and increased consumer satisfaction across various demographics.

Shared Values Drive Future Success

Both Castillo Hermanos and Harvest Hill share core principles centered around respect, quality, innovation, and a focus on customers and consumers. These shared values form the foundation for a successful partnership aimed at scaling both businesses. Robert Mortati, President and CEO of Harvest Hill, emphasized the enthusiasm surrounding the opportunity to build a future with Castillo Hermanos. He highlighted the alignment of their strategic visions, which will enable them to strengthen the presence of their brands throughout the beverage marketplace.

Jim Kilts, founding partner of Centerview Capital, praised the impressive track records of both companies in acquiring and integrating assets effectively. Their investment underscores the potential of this transaction to drive substantial growth. Citi serves as the financial advisor to Castillo Hermanos, leading the arrangement and bookrunning on the acquisition financing, while Skadden, Arps, Slate, Meagher & Flom LLP provides legal counsel. Although financial terms remain undisclosed, the transaction awaits customary closing conditions and regulatory approvals. This partnership holds immense promise for expanding the reach and influence of both companies’ brands in the competitive beverage industry.