Nestle has inked an agreement with Malher, a Guatemala-based manufacturer, marketer and distributor of culinary products and powdered beverages, in order to acquire the majority shares of the Guatemalan company.

The companies did not reveal the financial details of the transaction, which is contingent upon regulatory approval.

Malher product portfolio includes brands such as Malher, Yus and Toki.

The company owns two factories and four distribution centers, and boasts strong commercial presence in Guatemala and in other Central American countries, the Caribbean and North America.

Nestle believes that Malher's product portfolio, combined with its product distribution all over Guatemala, fits perfectly with its strategy to expand in emerging markets.

By the virtue of this agreement, Nestle will strengthen its position in the culinary business in Guatemala and foray into the powdered beverages sector.

Nestle Zone Americas executive vice president Luis Cantarell said that Malher Group and its prestigious brands will consolidate Nestle's leadership in the culinary category in the Central American Region.

"This association will be very positive as it will complement Nestle's research and development expertise with Malher's best in class product distribution in the region, allowing us to be closer to our consumers," Cantarell said.

The board of directors of Malher´s said that for Malher this is an important step as the combination of Mahler's and Nestle's talent will strengthen our company.

"This association will allow our brands to play in major leagues. Together with Nestle, we will continue working to satisfy the needs of our consumers to bring them the best quality products," they said.

Nestle, with around 70 years of presence in Central America, boasts a broad portfolio of brands. The Swiss company employs over 3,500 people and has six factories, several distribution centers and offices across the countries of this zone.