Strauss Elite, one of Israel's leading food retailers, is set to become Brazil's second largest coffee manufacture, after signing a merger deal with local coffee company Santa Clara this week, Israel's leading newspaper Yedioth Ahronoth reported Sunday.
In the framework of the agreement, Strauss Elite's subsidiary, Tres Coracoes, will merge with Santa Clara, one of the largest coffee companies in Brazil, owned by the Lima brothers. The new merger will be equally owned by the Israeli company and the limas.
Strauss Elite will funnel USD 60 million to the new firm, and will jointly manage it with its partners.
The merged company will manufacture roasted ground coffee, cappuccino, instant coffee and chocolate drinks powder, and handle the processing and storing of green coffee, an activity estimated at USD 60 million annually.
"This deal represents a breakthrough in Strauss Elite's way to become a leading factor in the ground coffee market, as well as in emerging markets," Ofra Strauss, the company's chairman said Sunday.