TPG Capital in Its Investment in a European Coffee Company

Cleary Gottlieb is representing TPG Capital in its acquisition of 25% of Strauss Coffee BV, the Dutch subsidiary of Israel’s Strauss Group Ltd., in a deal valued at approximately $290 million.

The deal will make TPG a minority owner in Strauss Coffee along with Strauss Group, Israel’s second-largest food and beverage company. Strauss’ coffee business, which has strong market share in Israel, Brazil, and Central and Eastern Europe, has recently experienced strong international expansion. Strauss Coffee revenues have tripled over the last five years, to NIS (New Israeli Shekels) 2.9 billion in 2007 from NIS1 billion in 2002.

Under the terms of the deal, TPG has the option to purchase an additional 10% of Strauss Coffee, exercisable at any point within two years of completion of the transaction.