The Strauss Group (TASE: STRS) announced the sale of its 50% stake in Sabra Dipping Co. and PepsiCo-Strauss Fresh Dips & Spreads International GmbH (Obela) for $243.8 million.
In 2005, Strauss acquired 51% of Sabra for $9 million and in 2008, PepsiCo purchased the remaining shares and formed a joint venture with PepsiCo, each owning 50%. Since then, Sabra has become the largest dip and spread company in the United States and the leader in the hummus market. Subsequently, the company expanded outside the United States with the Obela brand.
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Additionally, 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 of focusing on its core businesses. The latter strategy includes strengthening its base in Israel, expanding its operations in Brazil, continuing to grow its water-related businesses worldwide, while continuing to invest in developing its capabilities. and strengthening its resilience and preparation for the future.
Sabra operates in fresh refrigerated dips, salads and spreads in the United States and Canada, while Obela operates in Australia, New Zealand and Mexico, with a focus on hummus and guacamole . Sabra is the largest dips and spreads brand in the United States in terms of sales and market share, according to IRI data, while in terms of hummus it has the largest market share in the United States -United.
Sabra and Obela have 700 employees (end of 2023) and an advanced manufacturing facility in Virginia.
Shai Babad, CEO of Strauss, said: “This decision represents another pillar in the implementation of the group’s strategy, which aims to focus on the core business, make the best use of our resources and take action significant commercial activity for Strauss. We all thank Sabra. employees of all generations and PepsiCo for the extraordinary journey from a small salad company to the market leader in hummus in the United States.
Strauss estimates that it will record a net capital gain of around NIS 319 million to NIS 325 million from the transaction in its 2024 financial results.
Published by Globes, Israel Business News – fr.globes.co.il – November 22, 2024.
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