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.

US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
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.