REuters - Lavazza and Strauss vie for French coffee brands


(Reuters) - Italy's Lavazza and Israel's Strauss Group (STRS.TA) have hired advisers to submit rival bids for two French coffee brands which may come on the market early next year, several sources familiar with the matter said.

The L'Or and Grand Mere brands are expected to be put up for sale to ease a planned merger of Mondelez International's (MDLZ.O) coffee business with D.E Master Blenders 1753.

Lavazza is working with JP Morgan to make a bid in November while Strauss has appointed Rothschild to seek to acquire the brands, said the sources, who declined to be identified because the matter is private.

The two coffee companies are facing competition from four private equity funds -- BC Partners, Cinven, Clayton Dubilier & Rice, and PAI Partners -- which are also looking to finalize their bids following preliminary talks with the sellers, who are being advised by Lazard and Perella Weinberg Partners, the sources said.

The brands could be valued at about 450 million to 500 million euros ($575-640 million) in a sale.