Israeli food company Strauss-Elite has said it has sold its Excella chocolate factory in France to Spanish chocolate company Zahor for ILS37m (US$8.25m).

Strauss-Elite said the sale will be booked in its second-quarter results and will yield a capital gain of ILS1m after taking into account losses from discontinued activities, reported Dow Jones International News.

The Israeli company announced earlier this month that it was in advanced negotiations over the sale of the chocolate factory.

Earlier this year the board of Israeli food maker Elite Industries approved a merger with parent firm Strauss-Elite, giving the Strauss family greater control of the company. The international operations of Strauss-Elite focus mainly on coffee and chocolate.