Strauss Coffee set to acquire remaining stake in Le Café and Instanta
Strauss Coffee, a subsidiary of Israel-based Strauss Group, is set to acquire the remaining 49% stake in Le Café and Instanta, a Russia-based coffee manufacturer, for $13.4m. This acqusition is part of Strauss' strategy to expand in Russia and the CIS countries.
Strauss Coffee is funding the acquisition through its own resources. The transaction has to be approved by the Russian antitrust authority.
Strauss Group president & CEO Gadi Lesin said that the acquisition of the Le Café and Instanta in Russia is a step in the company's continuing growth in the CIS region.
"The roasted and ground coffee plant, which we completed last December, along with the instant coffee packaging facility, are becoming Strauss Russia's major infrastructure for production, packaging and logistics in addition to the freeze-dried coffee plant that serves us from Germany."
"All these facilities form an important foundation in the realization of Strauss Coffee's strategy as it continues to invest and develop capabilities in Russia and the CIS countries," Lesin added.
Le Café and Instanta owns a roasted and ground coffee manufacturing and packaging facility and a logistic center that serve the operations of Strauss Russia.
Strauss Coffee CEO Todd Morgan said, "This transaction enables Strauss CIS to further develop its manufacturing and supply chain regional foot print, along with enhancing its cost structure and operational effectiveness."
Strauss Coffee has operations in Central and Eastern Europe region, and Brazil. It is considered to be a leading coffee company in terms of green coffee purchases.