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Strauss Coffee Acquires Manufacturers of Freeze-Dried Instant Coffee in Germany


News provided by

Strauss Coffee

10 Jan, 2017, 09:00 GMT

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Strauss Coffee Acquires Manufacturers of Freeze-Dried Instant Coffee in Germany (PRNewsFoto/Strauss Coffee)

AMSTERDAM, January 10, 2017 /PRNewswire/ --

Strauss Coffee announced its decision to exercise the option to acquire Norddeutsche Kaffeewerke GmbH (NDK`W), manufacturers of freeze-dried instant coffee using the world's most advanced technology. Strauss Coffee will be acquiring the German freeze-dried instant coffee plant which it has leased since 2012.

     (Photo: http://mma.prnewswire.com/media/455557/Strauss_Coffee.jpg )

Exercise of the option is not expected to impact the existing production operations.

According to the lease agreement with the owners of the German company, the exercise price of the option is €32.1 million plus a waiver of the outstanding balance of a loan amounting to €17.9 million.

The transaction will be funded by Strauss Coffee's own resources.

Tomer Harpaz, Strauss Coffee CEO: "The acquisition is another step in executing Strauss Coffee's strategy to promote the emerging global coffee culture and bring consumers  advanced  coffee products and coffee experiences. The production site we are acquiring is the hi-tech of the coffee world and includes cutting-edge micro-grinding technology, which enables us to manufacture super-premium instant coffee products. The acquisition places Strauss in the very small, exclusive group of manufacturers possessing production sites and technologies of this kind.

"The most recent product launch in Israel, Intense instant coffee, was manufactured at the NDKW plant using this technology."

As mentioned, in 2012 Strauss Coffee closed an agreement with Norddeutsche Kaffeewerke GmbH, located near the city of Hamburg, for the production of freeze-dried instant coffee by Strauss Coffee's technologists and production workers. Production requires specialization in advanced production processes and a considerable financial investment. After the acquisition, the German plant will be exclusively owned by Strauss Coffee.

About Strauss Coffee 

Strauss Coffee (TASE: STRS)  is a global coffee company, One of the five leading companies (Euromonitor, retail sales volume share of total coffee) in its kind in the world, with annual sales of over one billion dollars. The company has invested and developed local coffee brands, which are leaders in various markets including Brazil, Poland, Romania, Serbia, Russia, Ukraine and Israel. The company operates 14 production sites worldwide and employs around 7,500 people. Strauss Coffee is committed to promoting coffee culture and share its passion for coffee with the world's consumers.

For further information, please contact:
Osnat Golan, VP Communications, Digital and Sustainability
+972-52-8288111

Gil messing 
Director of external communications
Strauss group
+972-54-2525272
Gil.messing@strauss-group.com

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