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PepsiCo has agreed to acquire the remaining 50% interest in Sabra Dipping Company and PepsiCo-Strauss Fresh Dips & Spreads International (Obela).

Once complete, the deal, which totals around ILS 900 million (approx. $241 million), will see PepsiCo become the sole owner of these companies, which make Sabra and Obela products.

Sabra and Obela are currently 50/50 joint ventures that had been formed between PepsiCo and Strauss Group to manufacture, distribute and sell refrigerated dips and spreads. Both Sabra and Obela market a variety of dips and spreads including hummus, guacamole, salsa, Greek yogurt dips and pesto.

In 2005, Strauss acquired 51% of Sabra's operations for approximately $9 million, and in 2008, it signed a partnership deal with PepsiCo to acquire 50% of the operation and establish a JV in which each company holds 50% of the shares. PepsiCo and Strauss formed the Obela JV in 2012.

The Sabra JV is based in New York and operates in the US and Canada, while Obela is based in Geneva, Switzerland, and operates in Australia, New Zealand and Mexico.

Shai Babad, president and CEO of Strauss Group, said: “This move is another step in executing our strategy, which aims to focus on our core businesses and leverage our resources in the best possible way. As part of the group's strategy implementation, we continue to lead significant business moves for Strauss's operations. We want to thank all Sabra employees over the years and PepsiCo for the extraordinary journey from a small salad company to the leading hummus brand in the US.”

PepsiCo expects the deal to transform its portfolio and drive accelerated innovation to develop more products that meet the growing demand for positive choices from North American consumers.

Steven Williams, CEO of PepsiCo Foods North America, said: “Our aim is to meet the growing demand for positive choices and on-the-go options. Nutritious, simple foods like refrigerated dips and spreads represent a space we have long desired to expand in the US and Canada. We are grateful to the Strauss Group for our long and successful partnership and look forward to this next chapter for the Sabra and Obela brands, as well as the PepsiCo food portfolio.”

The transactions are subject to customary closing conditions and are expected to close by the end of 2024.