January 1, 2018 / 8:38 AM / a year ago

Israel's Rami Levi to buy 20 percent of Cofix coffee chain

TEL AVIV (Reuters) - Israel’s Rami Levi Chain Stores (RMLI.TA) has agreed to buy 20 percent of coffee and snack chain Cofix Group (CFX.TA) at a company valuation of 105 million shekels ($30 million).

Rami Levi, one of Israel’s leading supermarket chains, also received a two-year option to increase its stake to 50.01 percent, Cofix said in a statement on Monday.

Founded in 2013 by businessman Avi Katz and modeled on dollar stores in the United States, Cofix sells coffee and snacks such as sandwiches for 5 shekels ($1.40) each. Until Cofix came along, Israeli cafes routinely charged $3-$4 for a coffee.

Katz expanded into the supermarket business with Super Cofix, a chain of discount mini-markets.

Rami Levi’s supermarkets are largely located on the outskirts of urban centers and the Cofix deal, which is subject to regulatory approval, will give it a foothold in city centers.

The much larger Rami Levi will seek to improve Super-Cofix’s profitability and trade and credit terms with suppliers so that Super-Cofix will enjoy the same terms as Rami Levi.

Reporting by Tova Cohen; Editing by Steven Scheer

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below