Spain-based Idilia Foods has struck a deal to acquire 50% of local dairy-drinks business Cacaolat from beer giant Damm.

The deal, agreed for an undisclosed sum, will see Idilia and Damm "jointly manage" Cacaolat, which markets drinks under its namesake brand, as well as Letona milk and Laccao chocolate milk.

The transaction remains subject to the approval of Spain’s National Markets and Competition Commission.

Idilia Foods' portfolio already includes the ColaCao and Paladin drinking chocolate brands, as well as Okey milkshakes. It also owns the chocolate spread brand Nocilla.

Under the terms of the deal, the production of Cacaolat brands will continue at the company’s plant in Catalonia in north-east Spain. The business will also still be led by general director Josep Barbena, a joint statement from Idilia and Damm read.

According to the statement, Cacaolat generated a turnover of €82m ($88.1m) in 2023, up more than 12% on 2022. The business employed 225 staff last year, the statement added.

Cacaolat, founded in 1933, sells its products in more than 30 countries.

Idilia and Damm said the deal would help further expand the presence of Cacaolat's brands "in the national and international markets".

Beer giant Damm acquired full control of Cacaolat in 2021 after buying out Cobega, its then partner in the business.

In June last year, Idilia sold its meat-free foods arm Obrador Sorribas to Sanygran Foods, a Spanish plant-based foods business.