Jerusalem, Sept 14 - Israeli food maker Osem Investments and Swiss parent Nestle signed a deal to buy 51 percent of a unit of Maabarot Products for 248.7 million shekels ($69 million), Osem said on Sunday.
Under the agreement, Osem would buy 51 percent of the assets and goodwill of Materna, the babyfood unit of Maabarot, for 151.5 million shekels, Osem said in a statement to the Tel Aviv Stock Exchange.
Nestle would pay 97.2 million shekels for 51 percent of the knowhow and rights to the brands of Materna.
The companies would also have the option to buy the remaining 49 percent in Materna for a period of up to 15 years following the close of the transaction.
The deal still requires regulatory and shareholder approvals.
Nestle, the world's largest food group, owns a 53.8 percent stake in Osem.
Osem's shares were up 1.4 percent, while Maabarot's shares were 4.6 percent higher in afternoon trade in Tel Aviv.