Sara Lee Corp is to buy full rights of Senseo coffee systems from Philips Electronics for 170 million euros ($220.5 million), its latest move intended to boost its international coffee and tea business, writes Reuters. Sara Lee, which is splitting itself into two companies, one of them an overseas coffee and tea business, had co-owned the Senseo brand with Philips, with Sara Lee producing the coffee pods and Philips making and distributing the single-serve machines.
Reuters – Sara Lee Corp (SLE.N) said it had agreed to buy full rights of Senseo coffee systems from Philips Electronics NV (PHG.AS) for 170 million euros ($220.5 million), its latest move intended to bolster its international coffee and tea business.
Sara Lee, which is splitting itself into two companies, one of them an overseas coffee and tea business, had co-owned the Senseo brand with Philips, with Sara Lee producing the coffee pods and Philips making and distributing the single-serve machines.
Under the deal, Sara Lee said it will have full control of the Senseo trademark and expected to expand into new coffee segments and markets.
Philips will continue to design, manufacture and distribute all Senseo machines over the next nine years, Sara Lee said.
In December, the company said it was buying Dutch coffee house chain CoffeeCompany, a chain of 60 cafes in major cities in the Netherlands that gets 7 million visits per year.
($1 = 0.7708 euros)
(Reporting by Kavyanjali Kaushik in Bangalore; Editing by David Holmes)
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