Strauss Group (STRS) M&A presentation summary

Strategic objectives and rationale

• Aims to maintain leadership in coffee and expand into non-coffee categories in Brazil by 2026.

• Focuses on increasing non-roasted and ground (non-R&G) activities and diversifying revenue streams.

• Acquisition of General Mills Brazil (Yoki) aligns with strategy to reduce exposure to green coffee volatility.

• Seeks to leverage synergies between 3corações and Yoki for operational and financial benefits within 18-24 months.

• Emphasizes growth through both organic initiatives and mergers & acquisitions.

Acquisition details

• 3corações, a 50%-owned JV, agreed to acquire 100% of General Mills Brazil (Yoki) for R$800 million (USD 150 million).

• The purchase price represents a 0.4x multiple on Yoki's FY2025 net sales.

• Transaction will be funded with 3corações cash-on-hand.

• Expected to close by end of 2026, subject to regulatory approvals.

• Synergies anticipated to contribute to profits and free cash flow within 18-24 months.

Yoki business overview

• Yoki is a leading Brazilian dry-food manufacturer with brands like Yoki and Kitano.

• Portfolio includes side dishes, seasonings, popcorn, snacks, grains, cereals, and desserts.

• Market leader in categories accounting for about 65% of FY2025 net sales.

• Employs around 3,700 people, with two manufacturing facilities and five distribution centers.

• Founded in 1960, acquired by General Mills in 2012 for BRL 2bn.