Mexico-based Grupo LALA has signed an agreement to acquire the branded business of Laguna dairy company in an all-cash deal for $246m.

The transaction is subject to customary closing conditions and regulatory clearances.

This acquisition is part of Grupo LALA’s strategy to expand its product line in the US market, where there is presence of a large Hispanic population.

"This acquisition represents a unique opportunity to enter high growth dairy categories in a key market in the Americas."

Laguna’s branded business unit, which has recorded double digit growth in the last two years, is expected to sell approximately $200m in 2016.

As per the agreement, Groupo LALA will acquire three production plants and more than five brands.

The branded products portfolio includes drinkable yogurt under the LALA and Frusion brands, and specialty milks under Promised Land and Skim Plus brands.

LALA is a leading brand in the adult drinkable yogurt category, while Promised Land and Skim Plus are premium milk brands in the US.

Grupo LALA CEO Scot Rank said: "This acquisition represents a unique opportunity to enter high growth dairy categories in a key market in the Americas.

"Through this transaction we are obtaining modern production facilities, growing businesses in value added categories, and a local platform for future growth in the world’s largest dairy market."

The transaction secured the approval from Grupo LALA’s independent audit committee and board of directors.

The company hired JP Morgan as financial advisor for this transaction.