Lacteos Toni

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Founded in 1978 by the Alarcon family (the “Sponsor”), Toni Corp. is one of the largest agribusiness companies in Ecuador. Through its subsidiary Industrias Lacteas Toni SA (“ILT”), Toni is the leading dairy company in Ecuador. The Group processes milk purchased from more than 2,400 farmers into a wide range of dairy products (UHT milk, flavored milk, cream, butter, cheese and yogurt) and produces bottled water, energy drinks and fruit beverages from concentrate under the licensed ‘Tampico’ brand. The Group also owns Plasticos Ecuatorianos SA (“Plasticos”), a packaging plant that supplies the dairy business and sells to 3rd parties, and Dipor SA (“Dipor”), which distributes all of ILT’s products.With a production capacity of more than 300,000 liters of milk/day, Toni operates a plant located in an industrial area of Guayaquil. This plant, originally designed in the early 1970s to produce 7,000 MT/year of yogurt, is currently producing more than 30,000 MTs. Although the Group has managed to grow its capacity over time in order to keep up with increasing demand, the plant has reached a saturation point where there is no more space to grow and/ or changes to the layout would derived in loss of efficiencies. Therefore, the Group is currently planning to move its plant to a new site (the “Project”). This will allow increasing production capacity, generating efficiencies through better layout and newer and more resource-efficient equipment.. Total Project cost is estimated at $42 million, of which the Company is planning to finance $30 million through long-term debt and the balance ($12 million) through internal cash generation.