Israeli Giant Diplomat Group Expands into New Markets
Translated & summarized from Maariv by baba
Israeli company Diplomat Group is acquiring a 60% stake in two Mexican distribution firms for approximately NIS 142 million, marking its entry into Latin America. The deal, pending regulatory approval, is part of Diplomat's international expansion strategy. The acquired companies reported revenues of about 1.8 billion pesos in 2025. Diplomat is also expanding its Israeli operations, including a significant deal for tobacco product distribution.
The story in 5 lines · by baba
- Diplomat Group is acquiring 60% of two Mexican distribution companies for approximately NIS 142 million.
- The deal signifies Diplomat's first expansion into the Latin American market.
- The acquired Mexican firms reported 2025 revenues of about 1.8 billion pesos.
- Diplomat is also expanding in Israel with a new exclusive distribution deal for JTI tobacco products.
- The company recently completed a NIS 300 million bond issuance with strong investor demand.
Israeli conglomerate Diplomat Group has announced an agreement to acquire 60% of two distribution companies in Mexico for approximately NIS 142 million. This deal marks Diplomat's first entry into the Latin American market, pending regulatory approvals. The two private Mexican firms specialize in the distribution and marketing of food, personal care, cleaning, health, and beauty products, operating with integrated operations.
In 2025, these companies reported revenues of about 1.8 billion Mexican pesos, a roughly 10% increase from 1.7 billion pesos in 2024. The acquisition is part of Diplomat's strategy to expand its international operations through mergers and acquisitions and diversify its income streams. The transaction is contingent on customary closing conditions, including regulatory approvals.
Initial payment is subject to adjustments, with two additional payments tied to the companies' performance over the next three years. The agreement also includes mutual call and put options, allowing Diplomat to acquire the remaining 40% of the shares starting after the audited financial statements for 2030 are approved. Diplomat's existing international operations are in South Africa, Georgia, New Zealand, Cyprus, Greece, and Romania.
Founded in 1963, Diplomat imports, markets, and distributes over 100 international and local consumer brands to various clients including food chains, pharmacy chains, and wholesalers. Concurrently, Diplomat is also expanding its activities in Israel. In February 2027, a subsidiary is set to begin exclusive distribution of JTI tobacco and smoking products, following an agreement signed in June. This deal is expected to generate approximately NIS 2.2 billion in gross annual revenue, or NIS 440 million after excise taxes.
Last month, Diplomat also completed its first bond issuance, raising about NIS 300 million. The offering saw demand of around NIS 1 billion, with bonds issued at a non-indexed shekel interest rate of approximately 4.49% for a five-year term.
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