Strauss Group's 3Coracoes buys Mitsui coffee unit for $48 million

The transaction also includes products such as coffee capsules and instant coffee that are currently being produced by Mitsui in the country.

By REUTERS

FEBRUARY 18, 2020 12:24

Cup of Coffee. [illustrative] (photo credit: REUTERS/JASON REED) — Cup of Coffee. [illustrative]

(photo credit: REUTERS/JASON REED)

Brazilian coffee company 3Coracoes announced on Monday the acquisition of a large part of Mitsui & Co Ltd’s (8031.T) coffee business in Brazil for 210 million reais ($48.55 million).

3Coracoes, a joint venture between local holding company Sao Miguel and Israel’s Strauss Group Ltd (STRS.TA), said in a statement that the deal includes two coffee processing plants, a distribution center and several brands.

The transaction also includes products such as coffee capsules and instant coffee that are currently being produced by Mitsui in the country.

3Coracoes said the deal will increase its leading share in Brazil’s ground roasted coffee market, particularly boosting its presence in the center-west region.

Brazil is the world’s largest producer and exporter of coffee, and the second-largest consumer after the United States.

Mitsui will retain its green coffee trading operation in Brazil, the statement said.