developing· Economy· Updated
Israeli Giant Diplomat Group Expands into New Markets
The Israeli consumer goods importer Diplomat Group is expanding into Latin America by acquiring a 60% controlling stake in two private Mexican distribution companies. The transaction is valued at approximately 142 million shekels, which Ice reported as approximately 45 million dollars. This acquisition marks Diplomat's entry into its eighth international market, adding to its existing operations in Israel, South Africa, Georgia, New Zealand, Cyprus, Greece, and Romania.
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What happened
- 01Diplomat Group is acquiring a 60% controlling stake in two Mexican distribution companies for approximately 142 million shekels.
- 02The acquisition marks Diplomat's first entry into the Latin American market and its eighth international market overall.
- 03The acquired Mexican companies reported combined revenues of approximately 1.8 billion pesos in 2025.
- 04According to Calcalist, the purchase price was reduced by 40% from the initial March agreement due to declining net profits.
- 05The agreement includes performance-based payments over three years and mutual options to buy the remaining 40% starting in 2030.
- 06The deal follows Diplomat's recent successful bond offering in Israel which raised 300 million shekels.
The two Mexican target companies specialize in distributing food, personal care, cleaning, health, and beauty products. In 2025, the firms reported combined revenues of approximately 1.8 billion Mexican pesos, representing a 10% increase from the previous year. However, Calcalist reported that the final acquisition price was reduced by about 40% from an initial March memorandum of understanding due to a decline in the companies' net profits and net debt in 2025.
The transaction is subject to regulatory approvals and customary closing conditions. The agreement includes provisions for two additional performance-based payments over the next three years, as well as mutual options for Diplomat to acquire the remaining 40% of the shares starting in 2030. The expansion follows Diplomat's recent 300 million shekel bond issuance and a new exclusive distribution agreement for JTI tobacco products in Israel.
Summarized by baba from the reports of 3 newsrooms. Updated
Latest report: Maariv. Read Maariv’s originalThe coverage
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