FRANCE: Nestle "mulling Davigel disposal"
Nestle "considering Divigel disposal"
Neslte is reportedly considering the sale of its French foodservice unit Davigel.
According to a Reuters report, citing unnamed sources, Nestle is weighing up selling the business in a move that could raise around EUR300m (US$400m).
Last year, Nestle signalled it was evaluating its assets and making portfolio management a priority. The group is selling off underperforming and non-core brands in order to increase its focus on key growth areas.
As part of this process, Nestle announced the sale of its PowerBar unit to Post Cereal yesterday (3 February). Late last year, the group completed the sale of its Jenny Craig weight management assets in North America and Oceania.
Responding to the Davigel report, a Nestle spokesperson said: "As a matter of principle, we do not comment on market rumours."
Davigel is part of Nestle Professional, the Swiss group's business-to-business unit.
Based in France, the business provides frozen and chilled foods to foodservice customers in ten countries around the world. Davigel operates three production plants in the Normandy, Brittany and Charente. It employs 3,000 people and, according to the group, Davigel's annual turnover totals EUR750m.
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