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Coke Israel Buys Control of Prigat |
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Monday, 28 January 2008 |
Central Bottling Co. Ltd. (Coca-Cola Israel) is buying 18 percent of Gat Foods from Kibbutz Givat Haim Meuhad and Kibbutz Givat Haim Ihud for NIS 80 million, giving Coca-Cola Israel the 51 percent controlling interest in the citrus fruit juice producer. The juice is marketed under the "Prigat" label. The two kibbutzim sold equal stakes in the company.
Central Bottling Co. subsidiary through Israel Beer Breweries Ltd. currently owns 33.3 percent of Gat Foods. Central Bottling Co. will have a call option to acquire the rest of Gat Foods at a company value of NIS 350 million. The option will come into force in eight years time and will be valid for two years.
Central Bottling Co. and the kibbutzim are expected to sign the deal next week, after Kibbutz Givat Haim Meuhad's members approve it. Kibbutz Givat Haim Ihud's members have already done so. Gat Foods has 450 employees and had an estimated turnover of NIS 700 million in 2007. It was founded in 1942.
More than half of Gat Food's turnover comes from exports to 35 countries. In the domestic market, the company sells juice to retailers and juice concentrates to industry. The company's general manager is a consensus appointment by its three owners; by acquiring the controlling interest, Central Bottling Co. will have broad flexibility in all matters relating to the company, and it wants to greatly expand international sales.
A Central Bottling Co. spokesman said that the company did not comment on its business plans or negotiations.
Copyright (c) 2008, Globes, Tel Aviv, Israel; Distributed by McClatchy-Tribune Information Services.
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