Israeli food and beverage company Strauss Group has brokered a deal to fully acquire the domestic coffee business of Mitsui Alimentos in Brazil.

Strauss Group executed this deal through its Tres Coracoes (3C) joint venture in Brazil.

The Israeli food and beverage company owns 3C through its Strauss Coffee unit together with Sao Miguel FIP, owned by the Lima family.

3C will acquire the business the quotas of Mitsui Alimentos in Brazil from Mitsui & Co in Japan and Mitsui & Co (Brasil).

Under the agreement, 3C will pay a consideration of BRL210m ($48m) for Mitsui Alimentos’s domestic coffee business.

Strauss Coffee CEO Zion Balas said: “The acquisition of Mitsui Alimento’s R&G coffee business in Brazil follows acquisitions made in the country in the past few years and establishes our position as the leading coffee company in Brazil.

“Strauss Group and its local partners, the Lima family, will continue to develop and grow the 3C joint venture organically as well as through further acquisitions that are relevant and complementary to our core business.”

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Through this acquisition, the company intends to strengthen its position in the coffee market in the country.

Since 1974, Mitsui Alimentos’s roast and ground coffee businesses have been operating in Brazil as part of Mitsui Alimentos.

However, Mitsui Alimentos’ coffee green beans export business will not be part of the deal.

Strauss Group CEO Giora Bardea said: “The coffee company is one of Strauss’s four major pillars and will continue to be one of the Group’s key growth drivers in the future.

“Our excellent partnership with the Lima family is today solidifying 3C joint venture´s leadership in the coffee business in Brazil and is a strategic anchor for the coffee company.”

Completion of the deal is subject to the approval by the Brazilian antitrust authority Administrative Council for Economic Defense (CADE).

Last February, Givaudan partnered with The Kitchen, food technology incubator of Strauss Group to expand its innovation ecosystem further by connecting with Israel-based food business people.