Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

EXCLUSIVE

Nestle reviewing possible sale of frozen food unit Davigel: sources

Send a link to a friend 

[February 04, 2014]  By Sophie Sassard and Anjuli Davies

LONDON (Reuters)  Nestle <NESN.VX> is exploring a possible sale of frozen foods business Davigel for about 300 million euros ($400 million), three sources familiar with the matter told Reuters on Monday, as part of a drive to trim its sprawling portfolio.

The world's largest food company, which said on Monday it sold its PowerBar business, is close to appointing a bank to advise on the possible sale, the sources said.

Nestle declined to comment.

Potential buyers were likely to include food service providers such as Brake Brothers, Booker Group and Sodexho <EXHO.PA> as well as private equity firms, the sources said. Bain & Co and Clayton, Dubilier & Rice are obvious choices, one said, since both have invested in food service in the past.

Davigel's 2012 earnings before interest, taxes, depreciation and amortization were between 30 million and 35 million euros and the business could sell for a mid- to high-single-digit multiple of that, two bankers said.


Davigel  which supplies frozen and chilled meals and ice cream to restaurants and hospitals  was part of the Buitoni frozen food business Nestle bought in 1989.

Nestle has not yet officially mandated a bank to sell Davigel but has worked closely with Credit Suisse <CSGN.VX> in the past and is expected to appoint that bank for this deal.

Credit Suisse declined to comment.

[to top of second column]

Nestle  whose wide range of products includes Gerber baby food and Perrier bottled water  said in October it would divest underperforming businesses.

It announced the sale of PowerBar and Musashi to Post Holdings <POST.N> on Monday, the sale of its U.S. frozen pasta business to Brynwood Partners in January and the bulk of its Jennie Craig business in November.

Nestle sold a 10 percent stake in fragrance and flavor maker Givaudan <GIVN.VX> in December.

(Additional reporting Martinne Geller in London and Silke Koltrowitz in Zurich; editing by Louise Ireland)

[ 2014 Thomson Reuters. All rights reserved.]

Copyright 2014 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
 

< Recent articles

Back to top