Dairy Farmers of America owned a 87.5 percent stake in National Dairy Holdings, which is based in Dallas. National Dairy is how a wholly owned subsidiary of Grupo Lala. Terms of the agreement were not disclosed.
The company’s most recognized regional brands include Borden, Dairy Fresh, Flav-O-Rich, Meyer Dairy, Dairymens, Velda Farms and Coburg Dairy.
Grupo Lala will assume control of the 18 processing facilities National Dairy operates in the United States. The existing management team will continue to lead day-to-day operations.
Acquiring National Dairy lets Grupo Lala broaden its “manufacturing and marketing of value-added dairy products in the United States,” said Eduardo Tricio, chairman of Lala.
Lala’s branded products have been growing in popularity among U.S. Hispanics, while the acquisition of the Frusion and La Creme brands has bolstered its share of the drinkable yogurt and yogurt-based dessert categories respectively.
The company owns 23 manufacturing facilities in Mexico, the U.S. and Central America.