Strauss Coffee acquire the “Ambassador” brand activity in Russia, Ukraine and Moldova
Gadi Lesin, President & CEO of Strauss Group and Chairman of Strauss Coffee, and Todd Morgan, CEO of Strauss Coffee, announced today another phase in the continued expansion of the Strauss Coffee business in Russia, with the acquisition of the Ambassador brands and products in CIS.
Strauss Coffee B.V. (74.9% owned by Strauss Group, 25.1% owned by TPG Capital) signed an agreement today with Sucafina Group to acquire the “Ambassador” brands of freeze-dried instant coffee and roast and ground coffee products sold in Russia, Ukraine and Moldavia
The transaction totals $10.4 million
Gadi Lesin, President & CEO of Strauss Group, said today: “The Ambassador transaction is another important step in Strauss Coffee’s expansion in Russia and CIS”
Todd Morgan, CEO of Strauss Coffee, said today: “Our acquisition of the Ambassador brand further enhances our competitive position in the Russian and CIS markets, and is another phase in developing our instant coffee bushiness on top of the Le Café transaction in Q4 last year.
About the Transaction
Strauss Coffee B.V. (74.9% owned by Strauss Group and 25.1% owned by TPG Capital) signed an agreement today with Sucafina Group to acquire the “Ambassador” brands of freeze-dried instant coffee and roast and ground coffee products sold in Russia, Ukraine and Moldavia. Net revenues of the brands were $10 million in 2010.
Strauss Coffee will pay $8 million for the brands, to be paid once ownership of the brand is assigned to Strauss Coffee. In addition, Strauss Coffee will pay $2.4 million for non-competition undertaking by the sellers. This will grant Strauss Coffee whole ownership of the company and the brand in Russia.
Strauss CIS intends to further develop Ambassador as a premium brand in the area.
Strauss CIS will acquire stock and equipment at net book price, and the transaction will be funded independently by Strauss Coffee. Strauss Russia will acquire stock and equipment at the lower of fair value and net book value.
The transaction is conditional on receipt of the approvals required by Authorities in Russia.
Ambassador, which specializes in premium instant and R&G coffee brands, established its activity in 1998. It operates mainly in Russia, Ukraine and CIS, and employs 70 people. Net revenues from the brand were $10 million in 2010.
About Strauss Coffee of the Strauss Group
Strauss Coffee is currently the fifth-largest coffee company in the world in terms of green coffee procurement volumes and one of the fastest growing coffee companies over the past five years. The Company enjoys a leading position in the coffee markets where it operates.
Strauss Coffee operates in CEE, Brazil and Israel, employs 6,000 people, and had revenues of over €675 million in 2010.
Strauss Coffee’s activities focus on the R&G (Roast & Ground) sector, and it also produces and markets instant coffee. The company also engages in coffee related products, providing coffee solutions to both the in-home and away from home markets, including coffee shops, restaurants, hotel and offices.