Nestlé has agreed to sell a 60% stake of its packaged meat business Herta to Spanish food company Casa Tarradellas.
Under the terms of the agreement, Nestlé and Casa Tarradellas will create a joint venture for Herta, with the companies’ respective stakes of 40% and 60%.
The joint venture will include Herta’s cold cuts and meat-based products, available in six European countries, and its dough business in France and Belgium, as it aims to build on the brand’s presence in Europe.
According to Nestlé, together its herta charcuterie and dough businesses reported sales of €667 million in 2018 and has been valued at €690 million.
The acquisition follows Nestlé’s announcement earlier this year, in which the Swiss company reiterated its intention to offload its Herta charcuterie business as part of its portfolio reshuffle.
Nestlé’s portfolio reshuffle was driven by the company’s intent on focusing more on plant-based products to keep pace with changing consumers demands. As a result, Nestlé said it will retain and develop its existing Herta vegetarian business.
Marco Settembri, executive VP and CEO of Nestlé’s Europe, Middle East and north Africa divisions, said: “The Herta business has delivered strong performance over the past years and is well-positioned for future growth.
“We are happy to have Casa Tarradellas as our partner, a family-run business that is a market leader in Spain for pizza, fresh dough and charcuterie. Both companies have a true passion for quality and innovation and are proud to be in a joint venture to provide our consumers with great ingredients for their daily meals.”
In line with the agreement, the joint venture will be incorporated in Spain. Operations will continue to be managed by the existing local Herta businesses in France, Germany, Belgium (also covering Luxembourg) and the United Kingdom (also covering Ireland).
The deal is expected to close in the first half of 2020 and will ensure the continuity of production sites and the current structure of the business including its employees.
© FoodBev Media Ltd 2019