Sara Lee to acquire Brazil's Cafe Damasco

[News_Editor]

Sara Lee to acquire Brazil's Cafe Damasco

2010-11-30 00:15:02 GMT+7 (ICT)

DOWNERS GROVE, ILLINOIS (BNO NEW) — Sara Lee Corp. announced on Monday that it has signed an agreement to acquire Brazilian-based Cafe Damasco.

With its premium positioned Damasco brand and several smaller brands, Cafe Damasco has a leading regional position in the Brazilian southern state of Parana with total 2009 net sales close to BRL 100 million ($60 million).

The acquisition price represents a multiple of around one time annual sales. The transaction is expected to close on November 30 and will be filed with the Brazilian competition authorities for review and approval.

"The acquisition of Cafe Damasco will create a stronger foothold for Sara Lee in the Brazilian territory, given Damasco's strong market position in the southern part of Brazil," said Frank van Oers, chief executive officer, Sara Lee international beverage and bakery.

"We will benefit from Damasco's strong sales and distribution network in the South. The transaction will also deliver manufacturing synergies in our facility in the Sao Paulo region, as well as an improved competitive position in the Northeast thanks to the excellent Damasco manufacturing facility in that area," Van Oers added.

Brazil is the number one coffee producing country in the world and the second-largest coffee consuming country, while Sara Lee is an important market leader in Brazil, offering a variety of brands, including its core coffee brands: Pilao, Caboclo, Cafe do Ponto, Moka, and Seleto.

"With our current brands Pilao and Caboclo, we already have a relevant market position in the central regions of Sao Paulo and Rio de Janeiro, which account for roughly half of the total Brazilian coffee market," Van Oers added.

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