Netherlands-based Strauss Coffee is planning to acquire German freeze-dried instant coffee company Norddeutsche Kaffeewerke.

Strauss Coffee intends to purchase the German coffee plant, which it has leased to Norddeutsche Kaffeewerke since 2012.

It is expected that the deal will not affect the current production operations.

"The acquisition places Strauss in the very small, exclusive group of manufacturers possessing production sites and technologies of this kind."

Strauss Coffee chief executive officer Tomer Harpaz said: "The acquisition is another step in executing Strauss Coffee's strategy to promote the emerging global coffee culture and bring consumers advanced coffee products and coffee experiences.

"The production site we are acquiring is the high-tech of the coffee world and includes cutting-edge, micro-grinding technology, which enables us to manufacture super-premium instant coffee products.

"The acquisition places Strauss in the very small, exclusive group of manufacturers possessing production sites and technologies of this kind. The most recent product launch in Israel, Intense instant coffee, was manufactured at the NDKW plant using this technology."

In 2012, Strauss Coffee closed an agreement with Norddeutsche Kaffeewerke for the production of freeze-dried instant coffee by its technologists and workers.

According to the lease agreement, the exercise price of the option is €32.1m, in addition to a waiver of the outstanding balance of a €17.9m loan.

Post-acquisition, Strauss Coffee will be the sole owner of the German plant.

Strauss Coffee operates 14 production sites and has 7,500 employees. The firm retails its coffee brands across various countries such as Brazil, Poland, Romania, Serbia, Russia, Ukraine and Israel.

Image: Strauss Coffee to purchase German freeze-dried instant coffee plant. Photo: courtesy of Strauss Coffee.