Shamir Food Industries Ltd. (TASE:SHAM) is negotiating with G. Willi-Food Investments Ltd. (TASE:WLFD), controlled by Arcadi Gaydamak, to collaborate on exports by Shamir Salads (2006) Ltd. If a deal is closed, it will be a major breakthrough for Shamir Food Industries, more than a year after Yacov Ginzburg and Amiram Guy acquired the company from receivership for NIS 3.75 million.
Shamir Salads exports more than NIS 6 million worth of products to the kosher Jewish markets in the US, Canada, Russia, France, and the UK. The company has a turnover of NIS 60 million.
Ginzburg said, “We’re negotiating a cooperation agreement. We’re not talking about an acquisition at this time. We’re negotiating to exploit their connections and capabilities in the US, Russia, and globally. Willi-Food distributes chilled products, and it has a US company. It is planning to go in the direction of expanding the kosher food category, and we thought that this was a good opportunity to enter this field with a partner.”
Ginzburg added, “An agreement with Willi-Food could revolutionize and bring us to other districts in general. There is no doubt that the potential overseas is greater. Furthermore, the category is growing, it is linked to health, freshness, and as a replacement for prepared foods. It has all the advantages sought for around the world.”
Published by Globes [online], Israel business news - www.globes.co.il - on October 15, 2007
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