Israeli food maker Strauss Group has acquired the refrigerated salsa and dips business of California Creative Foods (“CCF”) through its 50%-owned subsidiary Sabra Dipping Co.
The deal includes those assets involved in the production, marketing and sale of the refrigerated dips.
Sabra will pay US$33m for CCF’s refrigerated dips business, which will be paid on the closing date of the transaction. The consideration is subject to certain adjustments which will be calculated on the closing date of the transaction.
CCF’s gross revenue in 2009 was approximately US$35m. Within its food category, CCF ranks as the largest company in the US.
The acquisition price will be funded by shareholders’ loans. Strauss said that Sabra does not intend to invest additional material sums in its newly-acquired refrigerated dips business during the remainder of 2010.