Swiss food giant Nestle already owns 63.7% of Osem, Israel’s largest listed food maker.
It has offered 3.3bn shekels (€753m) or 82.5 shekels per share for the remainder, the companies said in a filing to the Tel Aviv Stock Exchange.
That’s well above Wednesday’s closing price of 65.71 shekels and higher than an offer of 80 shekels it made in November.
“Upon completion of the deal... the company will become a private company that is fully-owned by Nestlé.” Osem told the TASE.
The deal is subject to approval from Osem’s minority shareholders, and the company has scheduled a shareholder’s meeting for March 17.
Nestle, in a statement on its website, said it planned to “...continue to partner with Osem management to develop the company”.
Osem’s shares surged on the news and were trading up 22% at 80.23 shekels in early trading. Nestle was up 0.3% to €75.40.
Osem has a market value of 7.3 billion shekels and produces and sells products including pasta, salad dressings and ice cream under the Nestlé and other brand names.
It has nine factories across Israel and for the first nine months of 2015 it reported a net profit of 294m shekels on sales of 3.2bn.