NEW YORK, April 3 (Reuters) - Guatemalan conglomerate

Castillo Hermanos is buying U.S.-based Harvest Hill, maker of

beverages such as SunnyD, for around $1.5 billion, including

debt, according to people familiar with the matter.

The deal is expected to be announced later on Thursday, the

sources said, requesting anonymity because the terms of the

transaction are confidential.

Private equity firm Brynwood Partners launched the Harvest

Hill platform in 2014 with its acquisition of Juicy Juice from

Nestlé USA, Inc., and since then it has added eight other

beverage brands, including Daily's Cocktails and energy drink

Nutrament, to the platform.

Founded in 1886, Castillo Hermanos is a large, family-owned

company based in Guatemala. It manufactures food and beverage

products such as the Famosa beer brand, and owns several other

assets across Central America.

Brynwood Partners, Centerview Capital, Harvest Hill, and

Citi did not immediately respond to requests for comment.

Castillo Hermanos could not be reached for comment.

A deal for Harvest Hill would allow Castillo Hermanos to

diversify outside of Central America, and bypass tariffs to

introduce its own products to more U.S. consumers by making them

at Harvest Hill's manufacturing facilities. Harvest Hill, based

in Stamford, Connecticut, has several manufacturing facilities

across the country.

The Trump administration on Wednesday announced reciprocal

tariffs on several countries, some of which are in Latin

America. It already had imposed 25% tariffs on Mexican goods.

Castillo Hermanos, which will be the majority owner of

Harvest Hill, is partnering with US consumer-focused investment

firm Centerview Capital on the deal. Jim Kilts, a former Procter

& Gamble executive and consumer industry veteran, launched the

firm in 2006.

Other Latin American firms have partnered with U.S.

investors to acquire U.S. food and beverage companies in recent

years. Last year, Bia Foods, the investment arm of Guatemalan

conglomerate Grupo Mariposa, partnered with US merchant bank BDT

& MSD Partners to acquire U.S.-based Badia Spices for around

$1.2 billion, Reuters reported.

Based in Greenwich, Connecticut, Brynwood Partners is a

consumer-focused investment firm that manages more than $1

billion of capital.

Citigroup ( C/PN ) was the sole financial advisor to the buyer

group and led the financing for the deal.

The Wall Street Journal reported the deal talks earlier on

Thursday.