Guatemalan Powerhouse Castillo Hermanos Expands into US Market with Harvest Hill Acquisition

Guatemalan conglomerate Castillo Hermanos is acquiring U.S.-based beverage maker Harvest Hill for approximately $1.5 billion, including debt. The acquisition allows Castillo Hermanos to diversify its market and introduce products to more U.S. consumers. The deal marks another instance of Latin American businesses partnering with U.S. investors to explore expansion opportunities.

Guatemalan conglomerate Castillo Hermanos has reached an agreement to acquire U.S.-based Harvest Hill for around $1.5 billion, sources disclosed on Wednesday. The acquisition signifies Castillo Hermanos' first major foray into the U.S. market, as it looks to diversify outside Central America.

Founded in 1886, Castillo Hermanos is known for its wide range of food and beverage products and will now have the opportunity to bypass tariffs by utilizing Harvest Hill's manufacturing facilities located across Connecticut. The agreement is also expected to be a strategic move for the longstanding family-owned company.

This acquisition follows a trend of Latin American firms, such as Grupo Mariposa, partnering with U.S. investors to take control of American entities. Brynwood Partners, the current owner of Harvest Hill, and Castillo Hermanos declined to comment on the matter.

(With inputs from agencies.)