Nestle, the Swiss food giant, will acquire a majority stake in Grupo CRM, a Brazilian premium chocolate company, from private equity firm Advent International, Brazil Journal reported.

The deal, which is expected to be completed in 2024, will allow Nestle to expand its presence in the luxury chocolate segment, where it currently has a limited offering with brands such as Baci.

The financial terms of the deal were not disclosed, but local media reports estimated the value of Grupo CRM at between 3 billion and 4.5 billion reais ($602.78 million and $904.18 million).

Grupo CRM operates more than 1,000 chocolate boutiques in Brazil under the Kopenhagen and Brasil Cacau brands and has a growing online presence. Renata Moraes Vichi will remain as the CEO and a minority shareholder of Grupo CRM.

Nestle’s confectionary sales increased by 10.8% in the first half of 2023, while its operating profit margin improved by 70 basis points to 14.5%. The company faces competition from Swiss rival Lindt & Spruengli, which also reported strong sales and profit growth in the same period.