The Strauss Group (TASE:STRS) announced that it will sell a 50% stake in Sabra Dipping Company and PepsiCo Strauss Fresh Dips and Spreads International GmbH (Overa) for $243.8 million.
In 2005, Mr. Strauss acquired a 51% stake in Sabra for $9 million, and in 2008, PepsiCo purchased the remaining stake and formed a joint venture with PepsiCo, with each company owning 50%. Since then, Sabra has become the largest dips and spreads company in the United States and a leader in the hummus market. The company later expanded outside the United States with the Obela brand.
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In addition, Mr. Strauss will receive an option to purchase a 2.5% stake in PepsiCo’s salty snacks business in Israel.
The Sabra sale agreement reflects the continuation of Strauss’ 2024-2026 strategy to focus on its core businesses. This latest strategy includes strengthening our home base in Israel, expanding our operations in Brazil, and continuing to grow our water activities around the world, while building our capacity and strengthening our resilience and future readiness. This includes continuing to invest in
Sabra operates in the U.S. and Canada in refrigerated dips, salads and spreads, while Overa operates in Australia, New Zealand and Mexico, with a focus on hummus and guacamole. According to IRI data, Sabra is the largest dips and spreads brand in the U.S. in terms of sales and market share, and has the largest market share in the U.S. when it comes to hummus.
Sabra and Obera have 700 employees (as of the end of 2023) and an advanced manufacturing facility in Virginia.
Shai Babad, Strauss CEO This will be another pillar in the execution of the Group’s strategy to achieve this goal. We would like to thank everyone at Sabra.” Our extraordinary journey from a small salad company to a leader in the U.S. hummus market has involved employees of all generations and PepsiCo. ”
Strauss estimates that the transaction will result in a net capital gain in the range of NIS 319 million to NIS 325 million upon closing in 2024.
Published by Globes, Israel Business News – en.globes.co.il – on November 22, 2024.
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