Jerusalem, April 13 - Israeli food and beverage maker Strauss Group said on Sunday it would buy the coffee brands of Cosant Enterprises in Russia and other former Soviet states for $93 million.
Strauss said in a statement that the Chornaya Karta and Kaffa brands will be integrated into Strauss's coffee activities in the region.
It said the transaction would double Strauss's activities there to about $120 million and position it as a leading coffee player in Russia and the Ukraine.
"This is another manifestation of our commitment to continue growing Strauss' global coffee activity in an accelerated and profitable manner," said president and chief executive Erez Vigodman in the statement.
"This process is compatible with our strategy to develop our coffee activity in emerging markets, where our current and expected growth would have the highest rates."
Strauss said products under the acquired brands will be produced in part by Strauss Coffee's existing plants in the region, while other parts will be outsourced.
The company noted that it would fund the transaction from internal sources but would invest another $10 million to purchase inventories and provide credit to its new customers in that region.
Strauss said it was seeking further synergies in its CIS operations.
Strauss is market leader in roast and ground coffee in central and eastern Europe and the second-largest coffee firm in Brazil.