Sara Lee to Buy House Of Coffee Business
Sara Lee Corp. and its Norwegian joint venture partner Kaffehuset Friele announce that they have entered into an agreement with ISS A/S to acquire the House of Coffee business, a leading foodservice provider of beverage solutions to offices and institutions in Norway and Denmark .
The deal is expected to close before the end of calendar 2011 and is subject to customary conditions, including regulatory approval.
"As we prepare for the launch of our successful pure-play coffee company, we continue to strengthen our positions in important markets that will be key to both our success and the success of our partners," says Jan Bennink, executive chairman, Sara Lee Corporation.
Sara Lee owns approximately 45-percent of Kaffehuset Friele, the leading coffee company in Norway . Through this joint venture, Sara Lee successfully commercializes products such as Senseo coffee pods and Cafitesse liquid coffee in the Norwegian market. In Denmark, Sara Lee owns Merrild, the country's number-one coffee brand. The acquisition of House of Coffee will help Kaffehuset Friele and Sara Lee strengthen their positions across various out-of-home channels in both countries.
"Through the acquisition of House of Coffee we get a better foothold in the office coffee market which is a steadily growing segment. The strategic partnership between Kaffehuset Friele and Sara Lee continues to provide a strong platform for growth," says Olav Munch, CEO of Kaffehuset Friele.
In connection with the sale, the parties have entered into a strategic partnership agreement to continue providing coffee vending services to the current House of Coffee customers in the Norwegian and Danish markets.