Israeli food manufacturer the Strauss Group is considering an initial public offering in the US for its coffee subsidiary. One of Israel’s largest companies, Strauss also reported higher than expected profits in the final quarter of 2014, which may have been a factor in looking to an IPO.
The move is still very much up in the air, however. In a statement the company said, “There is no certainty that the IPO will indeed be finalized, and if it is, on which date.”
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What is most interesting is the decision by one of Israel’s oldest and most iconic brand names to choose the US for an IPO and not the Tel Aviv Stock Exchange. Israeli firms continue to spurn their own country when going public.
U.S. buyout firm TPG Capital Management has been assisting Strauss in its filing of the confidential draft prospectus for the possible IPO.
Headquartered in Amsterdam and accounting for almost half of its parent company’s total sales in 2014, Strauss Coffee is currently the world’s number 4 retailer in global sales.
Overall, Strauss Coffee B.V. has 14 production sites around the world and employs more than 6, 000 people.
Strauss Group partnered with TPG Capital (Texas Pacific Group), a leading global private investment fund, enabling TPG to acquire a 25.1% stake in Strauss Coffee. This partnership, which began in 2008, facilitates further accelerated growth of Strauss Coffee B.V.
Strauss Group is an international corporation with a portfolio of five companies. The Group has 14, 000 employees worldwide, is active in 22 countries, and has 29 production sites. Its turnover is estimated at $2 billion in 2013, of which its international operations account for 49%.
