Strauss Group Ltd. (TASE:STRS) has acquired Russian coffee brand Ambassador for $10.4 million from the Sucafina Group SA. Strauss is carrying out the deal through Strauss Coffee BV, its joint venture with TPG Capital.
Ambassador sells brands of freeze-dried instant coffee, and roast and ground coffee products in Russia, Ukraine and Moldova. Net revenue totaled $10 million in 2010. Strauss Coffee will pay $8 million for the brands and $2.4 million for non-competition undertaking by the sellers. Strauss CIS intends to further develop Ambassador as a premium brand in the region.
Strauss president and CEO Gadi Lesin said, “The Ambassador transaction is another important step in Strauss Coffee’s expansion in Russia and CIS."
Strauss Coffee CEO Todd Morgan added, "Our acquisition of the Ambassador brand further enhances our competitive position in the Russian and CIS markets, and is another phase in developing our instant coffee business on top of the Le Café transaction in the fourth quarter of last year."
Strauss said that Strauss Coffee was the fifth-largest coffee company in the world in terms of green coffee procurement volumes and one of the fastest growing coffee companies over the past five years. Strauss Coffee operates in Central and Eastern Europe, Brazil and Israel. It has 6,000 employees, and had €675 million revenue in 2010
Strauss's share price fell 2.5% by mid-afternoon to NIS 50.32, giving a market cap of NIS 5.48 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on July 31, 2011
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