Sara Lee Corp. said Monday it agreed to buy Cafe Damasco, a small Brazilian coffee company, for roughly $60 million as it looks to strengthen its position in South America’s largest country. Cafe Damasco has a leading position in the southern Brazilian state of Parana, and 2009 net sales of about $60 million.
The deal, which Sara Lee said represents a multiple of one time Cafe Damasco’s annual sales, is expected to close on Nov. 30.
News of the purchase comes nearly two weeks after Sara Lee interim Chief Executive Marcel Smits told Reuters he was very keen to make a move on Brazil.
