Through its subsidiary, Starkist, US concern Heinz is about to buy the Yona plant at Tirat Hacarmel from 3i Investment, which belongs to the British RJB group. Heinz will manufacture Starkist products at the Yona Plant, "Globes" has learnt. A letter of intent has already been signed, and the deal may be signed in the days ahead.
The value of the deal has not yet been agreed, and the parties are negotiating a five-year lease of the plant with a purchase option, or, alternatively, an immediate purchase of the plant.
"Globes" has learnt that Yona is valued at about $7 million for the purpose of the deal. Yona’s inventory, including finished products, raw materials, and packaging, is estimated at $5 million. The machinery, the buildings and the equipment will all be replaced by the buyer, who plan to invest about $1 million for this purpose in their first year of operation.
Starkist is the world’s leading tuna preserves manufacturer, with a sale turnover of $1 billion. Starkist has plants in Ghana (producing for Ghana and for Europe), the Seychelles, Portugal, and France. The Starkist tuna products approved as kosher by the Jerusalem religious court are manufactured in the US, and are exclusively imported and marketed in Israel by Fodor Trade.
Under the agreement currently taking shape, Starkist will run the plant and appoint a professional team for working out new high standards of manufacture, advanced technology, quality control, and environmental protection. Yona will become Starkist Israel, but, at the first stage, will continue to market also the Yona brand products. Since Starkist is the world’s biggest buyers of fish, it will import the fish and raw materials required for manufacturing the preserves in Israel.
Sources close to the negotiations set the joint Starkist-Yona operation at around NIS 150 million a year. Yona currently employs 90 staff, and when its activity is expanded, Starkist will hire additional staff, apparently from the local residents.
Starkist product sales in Israel amount to $15 million a year.
3i Investment (of the RJB group) bought Yona from Koor about two months ago.
Published by Israel's Business Arena July 7, 1999