Nestlé and its Israeli subsidiary Osem Investments have signed a memorandum of understanding to buy a 51% stake in the babyfood unit of Maabarot Products for ILS249m (US$61.9m).
Under the terms of the deal, Osem would buy 51% of the assets and goodwill of Materna, Maabarot’s babyfood subsidiary. Nestlé and Osem would also retain the option to buy the remaining 49% of Materna for 15 years after the transaction.
“We haven’t bought it yet,” a Nestlé spokesperson told just-food. “Now there is going to be due diligence and the whole process, but the intention is to buy a stake in that company.” He added that Nestlé expects the deal to be completed by the end of the year.
Nestlé owns 53.8% of Osem, shares in which are also traded on the Tel Aviv Stock Exchange.
In a separate development, Nestlé has said that the transfer of production of its confectionery brand Smarties from the UK to Germany is continuing on schedule.
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By GlobalDataPaul Grinwood, managing director of UK subsidiary Nestlé Rowntree, said the switch, which was announced last year, was expected to be completed by the end of the year.
