TEL AVIV, Israel, March 23, 2011 /PRNewswire/ -- The Strauss Group (STRS.TA) published today the following immediate report to the TASE.
The Company hereby announces that Tres Coracoes Alimentos S.A. ("Tres Coracoes"), a 50% joint venture of Strauss Coffee B.V. (74.9%) and Sao Miguel FIP, has signed a Letter of Intent to acquire the business of the coffee company "Fino Grao", which operates mainly in the Minas Gerais province and its capital Belo Horizonte, in Brazil.
Fino Grao sales in 2010 were approximately 32 to 35 million BRL (approximately 68 to 74 million NIS). The sales are comprised primarily of roast and ground coffee as well as cappuccino and espresso products. Fino Grao is the second-largest in market share in Belo Horizonte after Tres Coracoes.
This transaction will facilitate the capture of several synergies between Fino Grao and Tres Coracoes.
Tres Coracoes will pay in consideration of Fino Grao's coffee business, including trademarks, fixed assets and customers, without liabilities, an amount which represents a multiple of around one time annual sales of Fino Grao in 2010.
Tres Coracoes will conduct a due diligence review of the Fino Grao business. The parties undertook to sign a definitive agreement that will include the terms and conditions of the Letter of Intent as well as other terms and conditions customary in such agreements.
The transaction, which is expected to be closed by June 11, 2011, is conditional, inter alia, on receipt of all required approvals from the authorities in Brazil. The transaction will be funded from internal resources and bank credit. No additional significant investments will be required in the acquired business.
About Strauss Coffee
Strauss Coffee is the fifth-largest coffee company in the world in terms of green coffee usage, and one of the fastest growing coffee companies in the world in the past seven years. The company's revenues totaled NIS 3.4 billion at the end of 2010.
Strauss Coffee's activities focus on the R&G (Roast & Ground) segment and other coffee related products, providing coffee solutions to both the in-home and away from home markets, namely coffee shops, restaurants, hotel and offices.
The Company enjoys a leading position in the coffee markets in Central and Eastern Europe, Brazil and Israel.
About Tres Coracoes
Tres Coracoes is primarily engaged in the production and distribution of roast and ground coffee. The company also produces and sales other products such as corn products, coffee filter, cappuccino, chocolate, espresso, and powdered drinks. The company is the owner of the trademarks Santa Clara, Kimimo, 3 Coracoes, Pimpinela, Principal, Claralate, Dona Clara, Claramil and Frisco, the Group is among the two largest groups in the roasted and ground coffee market in Brazil.
The Group's manufacturing unit are located in the states of Ceara, Rio Grande do Norte, Minas Gerais and Rio de Janeiro, and has 23 distribution centers in most of Brazil states.
To visit at our website: http://www.strauss-group.com Investor Contact: Yaffa Cohen-Ifrah Director of Investor Relations Strauss Group Ltd. Tel: +972-3-6752545 Mob: +972-54-5772195 Email: email@example.com http://www.strauss-group.com Media Contact: Osnat Golan VP Communications Strauss Group Ltd. Tel: +972-3-6752281 Mob: +972-52-8288111 Email: firstname.lastname@example.org http://www.strauss-group.com
SOURCE Strauss Group Ltd