Nestlé has agreed to sell the North American business of its Buitoni pasta brand to private equity firm Brynwood Partners for an undisclosed sum.
The deal includes the rights to the Buitoni brand in the US, Canada and Caribbean territories, as well as a 240,000 square-foot manufacturing facility in Danville, Virginia.
Following the acquisition, the North American business will join Brynwood Partners’ newly-formed portfolio company Buitoni Food Company.
Buitoni Food Company will be headquartered in Stamford, Connecticut, while the Danville manufacturing facility will continue to support the business, along with its approximately 525 full-time employees.
In addition, Nestlé has also formed a long-term agreement with Brynwood Partners for Buitoni Food Company to continue to manufacture Nestlé Toll House cookie dough products at the Danville facility.
The Swiss food giant is yet to release its own comments, however confirmed a report by the Wall Street Journal, which cited a person familiar with the situation saying that the deal values the business at $115 million.
“We are thrilled to add the famous Buitoni brand, and its delicious pastas, sauces and cheeses to our investment portfolio,” said Henk Hartong III, chairman and CEO of Brynwood Partners.
He added: “The Danville, VA facility will enable us to quickly invest in new culinary and eating trends so that we can build on the strong foundation of current Buitoni offerings. We look forward to innovating and growing the Buitoni brand as more consumers seek out high quality meals that can be easily prepared at home.”
This recent deal marks Brynwood Partners’ eighth transaction that it has completed with Nestlé, following the acquisitions of Flipz, DeMet’s Turtles, Treasures, Stixx, Juicy Juice, Bit O Honey, Nutrament and Joseph’s Gourmet Pasta brands.
Buitoni is the latest in a series of disposals by Nestlé, followings the sale of its US ice cream business to Froneri and a majority stake in its packaged meat business Herta. In its most recent financial results, Nestlé also announced the potential sale of its Chinese Yinlu peanut milk and canned rice porridge business, which is currently under review.
The deal is expected to close within the next 30 days, subject to customary US regulatory review.
© FoodBev Media Ltd 2020