Strauss Coffee acquires Germany's Norddeutsche Kaffeewerke
Strauss Coffee has unveiled its decision to exercise the option for the purchase of Norddeutsche Kaffeewerke, which manufactures freeze-dried instant coffee in Germany.
Strauss Coffee will buy the German freeze-dried instant coffee facility which it leased since 2012. The company said exercise of the option is not anticipated to impact the current production operations.
The lease deal with the German company's owners includes the exercise price of €32.1m and a waiver of the outstanding balance of €17.9m loan.
Strauss Coffee CEO Tomer Harpaz said the acquisition is another step in implementing the company's strategy to promote the worldwide coffee culture and bring consumers advanced coffee products and coffee experiences.
Harpaz said: “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."
Norddeutsche Kaffeewerke is claimed to possess one of the advanced and modern freeze-dried coffee factories in Europe. It has a production capacity of about 4500 tons of freeze-dried coffee per year.
Strauss Coffee is a Netherlands-based global coffee company with over $1bn in sales. It has more than 14 production facilities and workforce of about 7500 around the world.
The company has invested in several local coffee brands in countries such as Brazil, Poland, Romania, Serbia, Russia, Ukraine and Israel.
Image: Strauss Coffee to acquire German freeze-dried instant coffee brand. Photo: Courtesy of PRNewswire.