Private equity firm TPG Capital is looking to sell a 25 percent stake in the coffee-producing subsidiary of Israeli food company Strauss Group Ltd.

The target, Strauss Coffee BV, produces a variety of coffee products including instant coffee, cappuccino, espresso and cocoa beverages. The company is based in Amstelveen, the Netherlands.

Strauss announced in a release that it will work with TPG in selling a minority stake and that it was a “regular practice of investment funds.”

Fort Worth, Texas-based TPG acquired the stake in 2008 for $293 million.

Strauss, in addition to coffee, produces snacks and fresh foods mainly in central and eastern Europe. The company is headquartered in Petach Tikva, Israel.

Sales growth at coffee and snack shops are forecast to outpace fast-food chains through 2017, according to IbisWorld Inc., and consolidation in the sector is expected to continue. In 2013, we've seen actor Patrick Dempsey's Global Baristas beat out Baristas Coffee for bankrupt Tully's Coffee parent TC Global. The $620 million purchase by Starbucks Corp. (Nasdaq: SBUX) of Teavana Holdings Inc. (NYSE: TEA) won Mergers & Acquisitions’ M&A Mid-Market Award for Deal of the Year for 2012. Future potential targets in the sector include Krispy Kreme Doughnuts Inc. (NYSE: KKD) and Jamba Inc. (Nasdaq: JMBA).

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