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TEL AVIV, Sept 14 Israeli food maker Strauss Group (STRS.TA) said its 50 percent held subsidiary Sabra Dipping Co will buy the refrigerated dips business of California Creative Foods (CCF) for $33 million, expanding its presence in North America.
The amount is subject to certain adjustments that will be calculated on the closing date of the transaction, which is expected to occur in 2010, Strauss, the world's sixth-largest coffee firm, said on Tuesday.
The deal includes assets involved in the production, marketing and sale of the refrigerated dips, including refrigerated salsa.
CCF's revenue in 2009 was about $35 million and it ranks as the largest company in the United States within its food category.
The acquisition will be funded by shareholders' loans.
Sabra, which is half owned by PepsiCo Inc (PEP.N), does not intend to invest additional material sums in its refrigerated dips business during the remainder of 2010. (Reporting by Tova Cohen; Editing by Louise Heavens)