Elite to buy Yad Mordechai Honey

Food, coffee and chocolate giant Elite Industries (Hebrew site) (TASE:ELEI) is taking over honey producer Yad Mordechai Honey (Hebrew site).

Elite said today that it has signed a memorandum of understanding with Kibbutz Yad Mordechai to acquire a 51% interest for NIS 9.7 million. The deal prices the honeymaker at NIS 19 million.

Yad Mordechai Honey makes honey spreads, health products and honey-based gift packages.

Elite clarified that the deal will only be finalized after due diligence and signature on a full agreement, as well as the acquiescence of the authorized people at the company and at the honeymaker.

The Yad Mordechai apiary was established in1986. It is Israel's biggest producer of honey and its products. Sales in 2001 came to NIS 40 million.

Elite chief executive Giora Bar-Dea commented that the acquisition complies with Elite's strategy of growth through acquisitions, and in expanding in the domestic market while remaining in its core food business.

Elite ended the first quarter on revenue of NIS 530 million, down 7% from the parallel quarter. It netted NIS 25 million, 8% less than in the corresponding quarter of 2001.