Kraft Foods sells fruit snacks operations
Kraft sell its fruit snacks operation to the Kellogg Company, for approximately $30 million. The fruit snacks business generated net revenues of approximately $80 million in 2004.
13/04/05 Kraft Foods Inc., a global leader in branded food and beverages, has announced that it has agreed to sell its fruit snacks operation to the Kellogg Company, for approximately $30 million. The fruit snacks business generated net revenues of approximately $80 million in 2004.
"This sale is part of our key strategy of transforming our portfolio," said Dave Johnson, Kraft's President, North America Commercial. "Through innovations, investments, acquisitions and divestitures, we're focusing our portfolio on businesses that offer Kraft sustainable competitive advantage."
The sale includes Kraft's 31st Street manufacturing facility in Chicago, IL. As part of the transaction, virtually all of the 400 employees there will join the Kellogg Company. "The employees at the fruit snacks facility have done an outstanding job; we wish them continued success in the future," said Johnson.
Kraft incurred an asset impairment charge of $93 million in the first quarter in recognition of the pending sale of this business. The transaction is expected to close in the second quarter.
