Sale of Nestlé’s Davigel to Brakes Imminent
15 Apr 2015 --- Nestlé has announced that it has entered into exclusive negotiations with the Brakes Group, a leading European food service operator owned by the private equity manager Bain Capital, for the sale of its frozen foods unit Davigel. The negotiations are said to be in their advanced stages, although financial details have not been disclosed.
Credit Suisse is reported to be handling the sale for Nestlé , which is expected to raise between $211-317 million.
Last year Nestlé announced 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. It bought Davigel as part of Buitoni in a deal in 1989.
The move comes as part on an ongoing trend for FMCGs to sell off businesses that no longer fit with the company’s strategy for growth. While Nestlé has been rather inactive in this area, its competitors, particularly Unilever, have been selling off assets in order to streamline for some time. Nestlé remains the world’s leading food company, with annual sales of $92bn in 2014.
The transaction is subject to consultations with the relevant works councils and the approval of the competition authorities.