“In recent years, the company has been working to open itself to the world and bring to life our goal to create global brands that ensure sustained growth and continue to strengthen our leadership,” Juan Monge Calderón, chairman of Castillo Hermanos, said in a statement. “This acquisition marks a milestone in our history. We welcome the leadership team of Harvest Hill that will join our team and are confident that, together, we will continue to captivate consumers and create world-renowned brands.”

Castillo Hermanos has more than 139 years of operating expertise and a solid track record in 35 countries, it shares, where it “continues to captivate consumers across its brands,” including Gallo Beer, known as Famosa Beer in the United States.

“This is a key moment in our history as we set out to meaningfully expand our reach into the U.S.,” Roberto Lara, CEO of Castillo Hermanos, said in a statement. “Our trusted and iconic brands, combined with Harvest Hill’s, offer a compelling product assortment to cater to diverse consumer needs. We are thrilled to welcome Harvest Hill to the Castillo Hermanos family and want every one of their employees to be part of our strategy for expansion and sustained growth. We look forward to working closely with Harvest Hill’s experienced leadership team to unlock key growth opportunities, leveraging their manufacturing facilities, distribution network and understanding of the beverage category in the U.S.”

In a statement, Robert Mortati, president and CEO of Harvest Hill, shared that the company could not be more excited about building a future with Castillo Hermanos.

“Founded on similar values and principles based on respect, quality, innovation and customer and consumer centricity, Castillo Hermanos’ and Harvest Hill’s strategic visions are aligned,” Mortati said. “Together, we will be able to scale our businesses, enhancing the presence of our brands across the beverage marketplace.”

The transaction will create a compelling player that is well-positioned to capitalize on the significant U.S. juice and beverage alcohol opportunities, the companies say. Having a nationwide beverage platform and diverse portfolio of national, iconic brands, along with a strategically located manufacturing and distribution footprint, and deep relationships with retailers across various channels, will advance Castillo Hermanos’ U.S. route to market, it notes.

In addition to the complementary strengths within this transaction, Castillo Hermanos says it can execute other key value levers, including expanding and introducing brands from its Maravilla business unit to the United States, which will lower production, distribution and manufacturing costs, as opposed to importing, and introducing new brands to the U.S. market.