According to reports, Nestlé is in exclusive talks to sell its frozen food unit, Davigel, to UK-based Brakes Group.
Nestlé said that it was “exploring strategic options” for the underperforming, northern France-based business when it first disclosed details of the potential acquisition in November. In 2007, fresh and frozen food supplier Brakes was acquired by US private equity firm Bain Capital.
This current deal is the latest example of Nestlé’s long-running efforts to reduce its portfolio of interests and focus more on its core businesses and brands.
Nestlé said that it “was exploring strategic options for the development of its subsidiary Davigel, a leading provider of branded frozen and chilled food products, ice-cream and solutions for out of home in Europe as part of its on-going portfolio review.
“Nestlé has… announced that it has entered into exclusive negotiations for the sale of Davigel with the Brakes Group, a leading European food service operator owned by the private equity manager Bain Capital.
“The transaction is subject to consultations with the relevant works councils and the approval of the competition authorities. Financial details are not being disclosed.”
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