Osem Investments Ltd. (TASE: OSEM) has bought out its partner in Tivall (1993) Ltd., buying 42% of the company from Kibbutz Lohamei Haghetta'ot for NIS 468.5 million, and will now fully own the meat substitutes and vegetarian products company.

Tivall wholly owns Tivall Europe, Sabra Salads Co., and Tribe Mediterranean LLC in the US.

Osem said will pay NIS 208.6 million immediately and the balance in two annual installments linked to the Consumer Price Index (CPI), plus interest. Kibbutz Lohamei Haghetta'ot agreed to three years non-competition.

Osem that full ownership of Tivall will enable it to carry out its expansion plans in the meat substitute and Middle East salads businesses in Israel, Europe, and the US, and to reap the full potential of this expansion.

Osem brought forward its option to acquire 100% of Tivall from 2013, which Osem announced in March. Completing the acquisition now reflects the speed at which the company is developing its domestic and international growth engines.

Osem has been expanding its international activities in the past two years in markets where it has a strong edge: Middle Eastern salads and meat substitute products, through Tivall. Osem acquired Tribe Mediterranean in August 2008, and acquired US meat substitute products company Foodtech International Inc Veggie Patch label a few months later. Tivall has built a plant in the Czech Republic and acquired Sweden's Hälsans kök (Tivall Sweden AB)

Nestle AG (SWX:NESN) owns 53.8% of Osem. Osem's share price fell 0.1% by mid-afternoon to NIS 57.81, giving a market cap of NIS 6.4 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2010

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