Strauss gets paid for coffee business stake

Strauss Group Ltd. (TASE:STRS) said today that it has closed the deal with private equity group TPG Capital and received payment from it, after securing all the necessary permits from the authorities by August 24.

TPG will pay $293 million for 25.1% of Strauss' coffee business (a sum that includes annual interest of 6% from the end of 2007 to the date of the closure of the deal). Strauss is expected to record a capital gain of $75 million in its financial report for the third quarter of the year.

TPG acquired the stake in Strauss at a value of around $1billion before money. The fund was also given a two-year option on the acquisition of a further 9.9% in Strauss, at the same company value plus a 6% interest charge from the date of closure to the option exercise date.

Published by Globes [online], Israel business news - www.globes-online.com - on September 10, 2008

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