Diplomat Enters Mexico, Acquires 60% of Two Distribution Companies

In depth

The Diplomat group will acquire 60% of two distribution and consumer-goods companies in Mexico for about NIS 142 million, about $45 million. The agreement includes an option to acquire the remaining shares in three years, and the consideration was cut by about 40% compared with the memorandum of understanding signed in March.

The initial value of the acquisition reflects about $75 million for all the companies together. The acquired companies recorded revenues of about 1.8 billion pesos in 2025, with growth of about 10%. The agreement also includes additional payments based on performance.

The deal is subject to regulatory approvals. Upon completion, Mexico will be the eighth country in which Diplomat operates, and it will mark the group's first entry into Latin America. CEO Yaron Blum said: "a significant step in our global expansion". The move follows a bond issuance of about NIS 300 million and the distribution agreement with JTI.