Diplomat enters Mexico with $45 million acquisition of two local distributors

Diplomat enters Mexico with $45 million acquisition of two local distributors

The Israeli consumer goods importer will acquire 60% of two Mexican companies for NIS 142 million, approximately 40% below the amount initially contemplated. The deal will expand Diplomat's operations to eight countries.

Israeli food and consumer goods importer Diplomat is expanding into Mexico through the acquisition of controlling stakes in two local companies for NIS 142 million ($44.8 million). The consideration is approximately 40% lower than the amount stipulated in a memorandum of understanding signed last March, reflecting a decline in the companies' net profits in 2025 and adjustments for their net debt.

Diplomat will acquire 60% of each company, with an option to purchase the sellers' remaining shares in three years.

Diplomat currently operates in seven countries: Israel, South Africa, Georgia, New Zealand, Cyprus, Greece and Romania. Upon completion of the transaction, Mexico will become its eighth market.

The two companies have been active in the Mexican consumer goods market for many years, distributing food, personal care products, cleaning supplies, and health and beauty products to a range...