On 2 February, the French food group Danone signed an agreement acquiring 20% of Israel“s Strauss group“s dairy-products operations. A spokeswoman for Strauss would not say how much Danone paid for …
On 2 February, the French food group Danone signed an agreement acquiring 20% of Israel“s Strauss group“s dairy-products operations. A spokeswoman for Strauss would not say how much Danone paid for the holding. Under the agreement the French company will appoint two directors to the Strauss board and supply the Israeli company with know-how on production, distribution, research and development. Danone will also help Strauss in building a new plant in Ahihud in northern Israel. Israel Radio quoted market sources as saying Danone paid US$ 55 million for the holding, which does not include Strauss“s non-dairy or ice cream businesses. The Anglo-Dutch group Unilever acquired 50% of Strauss Ice Cream in September 1995. The deal between Strauss and Danone was originally announced in May 1996. “We are not very strong in that part of the world (the Middle East) and we really think that Israel is a good place to begin building the name and brand of Danone,” said Danone managing director Frank Riboud. Michael Strauss, Strauss“s chairman, said he hoped that the agreements with Danone and Unilever would enable Strauss to expand out of Israel. “I think that for a company like ours, the Israeli market has become too small for it and in order to develop both at home and abroad it is important to have a strategic partner with extensive know-how who will give us the opportunity to use this reserve from a technical, technological and managerial viewpoint,” Strauss said. The Strauss company, which is closely held, is Israel“s second-largest dairy producer after the Tnuva cooperative. The company produces prepared salads and pasta and ice cream, but Danone is buying into its principal business. The company had estimated sales of US$ 226.9 million in 1995. Danone, one of the world“s largest producers of dairy products, had sales of US$ 16.4 billion last year.