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Kraft Heinz to divest Plasmon
Posted on Thursday, 09 May 2019 13:59
US food manufacturer Kraft Heinz has begun the process of selling its Plasmon baby food subsidiary, according to Reuters.
Two people with knowledge of the matter told the news provider that a divestment has been launched and has piqued the interest of private equity investors and fellow food makers.
PAI Partners and Cinven have both been named in connection with possible approaches.
The sources added that preliminary bids are expected to be received by the end of next week and, should a deal go ahead, it could be worth around EUR 700.00 million.
Il Sole 24 Ore picked up on the news, noting that JPMorgan has been appointed to advise on the matter.
None of the parties involved have commented on the report.
According to Reuters’ report, Kraft Heinz has decided to offload Plasmon as part of plans to concentrate its efforts on its global brands, as opposed to regional product lines; the target is primarily focused on Italy.
The news provider noted that Plasmon generates annual revenue of more than EUR 200.00 million.
This is not the first time the baby food brand has been named in connection with a sale; last month, Davide Milano, a partner at Oaklins Italy, said Italian food manufacturer Newlat could be interested in buying the business following a planned initial public offering.
Kraft Heinz has been linked with another sale this year; in February, people in the know told CNBC the firm had appointed Credit Suisse to advise on a potential sale of the company’s Maxwell House coffee business.
Those sources said a divestment of the business could generate proceeds of more than USD 3.00 billion.
Kraft Heinz posted net sales of USD 26.26 billion for the year to 29th December 2018, up from USD 26.09 billion over the preceding 12 months.
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