Saudi Arabian food manufacturer Savola Group has confirmed it has started initial talks with the Kuwait Food Co., also known as Americana Group, to acquire a stake in the company.
In a bourse filing, Savola said the talks have not yet led to a “fundamental development”, but a disclosure agreement has been signed.
Reports suggest private-equity firms Advent International and TPG Capital have also submitted bids for the firm. KKR and CVC Capital Partners are also said to have tabled a joint offer.
Americana’s food manufacturing arm produces brands including California Garden beans and Farm Frites frozen vegetables, supplying products to supermarkets across the Middle East. It is also a franchise operator of a number of restaurants across the region, including KFC and Pizza Hut.
The sale is expected to fetch about US$5bn.