Diplomat Holdings Acquires 60% Stake in Two Mexican Firms for 142M NIS
Diplomat Holdings is expanding into Mexico by acquiring a 60% stake in two consumer goods companies for 142 million shekels, marking its eighth global market.
Diplomat Holdings, a major Israeli food and consumer goods distributor, is expanding into Mexico by signing an agreement to acquire a 60% controlling stake in two local companies for 142 million shekels. The final transaction value was cut by approximately 40% compared to the initial memorandum of understanding signed last March, adjusted to reflect the acquired firms' financial results for 2025 and net debt deductions.
Under the deal, finalized via Diplomat Cyprus, the Israeli group secures an option to acquire the remaining shares from the sellers in three years. Mexico will become the eighth country of operation for Diplomat, joining Israel, South Africa, Georgia, New Zealand, Cyprus, Greece, and Romania. The two acquired Mexican firms specialize in marketing food, personal care, cleaning, and beauty products to retail and wholesale clients.
Financial results for 2025 showed mixed performance. The first company's sales grew by 13% to 1.2 billion Mexican pesos, while operating profit fell 9.2% to 104.1 million pesos, and net profit dropped 36% to 42 million pesos. The second company saw a 2% sales increase to 634 million pesos, with net profit declining 16.4% to 36.7 million pesos, despite a 17.2% rise in operating profit to 80.7 million pesos. The deal remains subject to Mexican antitrust approval and other closing conditions.
Diplomat CEO Yaron Bloom stated that the acquisition marks a significant milestone in the company's global expansion and diversification strategy. Following a 300 million shekel bond offering last month and a major distribution agreement with JTI set to take effect in February, Diplomat aims to leverage its global supplier ties and technological expertise to accelerate growth in the Mexican market.
