Osem Investments Ltd. (TASE: OSEM) meat substitute subsidiary Tivall (1993) Ltd. has acquired the business activity of US firm, Foodtech International Inc., for up to $20 million. Osem parent Nestle (SWX:NESN) acquired Foodtech's intellectual property for $9.4 million.
Foodtech markets frozen meat substitute products in North America under the Veggie Patch label. The company's revenue rose 50% over the past three quarters to $15.4 million. Osem will finance the acquisition with its own source as well as outside financing.
Osem hopes that Veggie Patch will be synergetic with the company's business, especially Tivall, enabling Osem to expand its international operations to the North American market by leveraging Foodtech's activity. The acquisition follows Osem acquisition of Tribe Mediterranean Food Company LLC, which makes and markets Middle Eastern salads in the North American market, earlier this year.
Foodtech International is owned by Eli Soglowek, a scion of the family of Israeli meat products company Soglowek Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2008
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