Strauss Coffee Acquires German Plant
Strauss Coffee has decided to exercise its option to acquire Norddeutsche Kaffeewerke, manufacturers of freeze-dried instant coffee using the world’s most advanced technology. Strauss Coffee will be acquiring the German freeze-dried instant coffee plant which it has leased since 2012. Exercise of the option is not expected to impact the existing production operations.
According to the lease agreement with the owners of the German company, the exercise price of the option is €32.1 million plus a waiver of the outstanding balance of a loan amounting to €17.9 million. The transaction will be funded by Strauss Coffee’s own resources.
Tomer Harpaz, chief executive of Strauss Coffee, comments: “The acquisition is another step in executing Strauss Coffee’s strategy to promote the emerging global coffee culture and bring consumers advanced coffee products and coffee experiences. 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.”
Headquartered in Amsterdam, The Netherlands, Strauss Coffee is one of the five leading companies of its kind in the world, with annual sales of over $1 billion. The company has invested and developed local coffee brands, which are leaders in various markets including Brazil, Poland, Romania, Serbia, Russia, Ukraine and Israel. The company operates 14 production sites worldwide and employs around 7,500 people.
