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G. WILLI-FOOD SIGNS AGREEMENT TO FURTHER EXPAND
INTERNATIONAL TRADE CAPABILITIES
COMPANY TO OWN A MAJORITY INTEREST OF
NEW GLOBAL KOSHER TRADE AND EXPORT COMPANY
YAVNE, ISRAEL - FEBRUARY 13, 2007 - G. WILLI-FOOD INTERNATIONAL LTD. (NASDAQ:
WILC) (the "COMPANY" or "WILLI FOOD"), one of Israel's largest food importers
and a single-source supplier of one of the world's most extensive range of
quality kosher food products, announced today that it had signed an agreement
with the Baron family (an unrelated third party) , kosher food exporters located
in Israel, to form a joint global kosher trade and export company ("Joint
Company"). The Company will hold a 50.1% interest, and the Baron family will
hold the remaining interest. Under the terms of the agreement, all of the
current food export operations of the Baron family will be executed under the
new entity. The closing of the transacation is subject to customary closing
conditions, including approval of the Israeli Anti-Trust Authorities and
completion of exihibits.
Under the agreement, the Joint Company will be engaged in the food export
activities performed until now by the Baron Family, which involved the export of
kosher products from more than 100 suppliers, predominantly from Israel, to the
U.S., Canada, England, Belgium, France, Switzerland, Australia, South Africa,
Mexico, Argentina and Chile. Product categories currently exported include
candies, preserves, cakes and cookies, snacks, cereals, frozen pastries and ice
creams, baby food and general grocery items.
Mr. Zwi Williger, President and COO of Willi-Food commented, "We are very
excited about this opportunity. The transaction will significantly expand our
geographic reach through the addition of several export markets as well as
increase our penetration into the U.S. market and complement our recent
acquisition of Laish. We will also benefit from a wider overall product offering
and new supplier relationships."
The currently anticipated trade volume for the new trade and export company for
2007 is approximately $10.0 million. In consideration forthe 50.1% interest,
Willi-Food will pay up to $2 million in trade financing, as needed. Of this
amount, an amount equal to two times net profit before tax during the first four
full consequtive quarters (after closing) will be converted into equity, up to a
maximum amount of $1 million.
"We are delivering on our expansion strategy," added Mr. Williger. "This deal
provides multiple outlets for future growth by extending Willi-Food's
international market reach and by adding another dimension to the business."
ABOUT G. WILLI-FOOD INTERNATIONAL, LTD.
G. Willi-Food International Ltd. is one of Israel's largest food importers and a
single-source supplier of one of the world's most extensive ranges of quality
kosher food products. It currently imports, markets and distributes more than
400 food products manufactured by some 100 top-tier suppliers throughout the
world to more than 1,000 customers. The Company excels in identifying changing
tastes in its markets and sourcing high-quality kosher products to address them.
For more information, please visit the Company's website at
www.willi-food.co.il.
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF
SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
RELATING TO FUTURE EVENTS OR OUR FUTURE PERFORMANCE, SUCH AS STATEMENTS
REGARDING TRENDS, DEMAND FOR OUR PRODUCTS AND EXPECTED REVENUES, OPERATING
RESULTS, AND EARNINGS. FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN
RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE OUR ACTUAL RESULTS, LEVELS
OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM ANY
FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR
IMPLIED IN THOSE FORWARD-LOOKING STATEMENTS. THESE RISKS AND OTHER FACTORS
INCLUDE BUT ARE NOT LIMITED TO: CHANGES AFFECTING CURRENCY EXCHANGE RATES,
INCLUDING THE NIS/U.S. DOLLAR EXCHANGE RATE, PAYMENT DEFAULT BY ANY OF OUR MAJOR
CLIENTS, THE LOSS OF ONE OF MORE OF OUR KEY PERSONNEL, CHANGES IN LAWS AND
REGULATIONS, INCLUDING THOSE RELATING TO THE FOOD DISTRIBUTION INDUSTRY, AND
INABILITY TO MEET AND MAINTAIN REGULATORY QUALIFICATIONS AND APPROVALS FOR OUR
FOOD PRODUCTS, TERMINATION OF ARRANGEMENTS WITH OUR SUPPLIERS, IN PARTICULAR
ARLA FOODS AMBA, LOSS OF ONE OR MORE OF OUR PRINCIPAL CLIENTS, INCREASING LEVELS
OF COMPETITION IN ISRAEL AND OTHER MARKETS IN WHICH WE DO BUSINESS, CHANGES IN
ECONOMIC CONDITIONS IN ISRAEL, INCLUDING IN PARTICULAR ECONOMIC CONDITIONS IN
THE COMPANY'S CORE FOOD MARKETS, OUR INABILITY TO ACCURATELY PREDICT CONSUMPTION
OF OUR FOOD PRODUCTS AND RISKS ASSOCIATED WITH PRODUCT LIABILITY CLAIMS. WE
CANNOT GUARANTEE FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR
ACHIEVEMENTS. THE MATTERS DISCUSSED IN THIS PRESS RELEASE ALSO INVOLVE RISKS AND
UNCERTAINTIES SUMMARIZED UNDER THE HEADING "RISK FACTORS" IN THE COMPANY'S
ANNUAL REPORT ON FORM 20-F FOR THE YEAR ENDED DECEMBER 31, 2005, FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION ON MAY 31, 2006. THESE FACTORS ARE UPDATED
FROM TIME TO TIME THROUGH THE FILING OF REPORTS AND REGISTRATION STATEMENTS WITH
THE SECURITIES AND EXCHANGE COMMISSION. WE DO NOT ASSUME ANY OBLIGATION TO
UPDATE THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE.
CONTACT:
G. Willi Food International Ltd.
Chen Shlein, CFO
(+972) 8-932-2233
chen@willi-food.co.il
IR CONTACT:
The Global Consulting Group
Christopher Chu
(646) 284-9426
cchu@hfgcg.com