Nestle today (15 April) confirmed it is in "exclusive" talks to sell its France-based foodservice arm Davigel subsidiary to Brakes Group, a UK foodservice supplier owned by Bain Capital.
The move comes as part of Nestle's ongoing portfolio review that has seen it prune under performing businesses from its portfolio. The group announced that it was "exploring strategic options" for Davigel, which manufactures branded frozen and chilled products for out of home consumption, last November.
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The company revealed this morning that it has entered into "exclusive negotiations" for the sale of France-based Davigel with Brakes group. The transaction remains subject to consultations with relevant works councils and competition authorities.
Financial details are not being disclosed, Nestle said. A Reuters report put the price tag at between EUR200-300m (US$211.3-316m).
Davigel is part of Nestle's foodservice unit Nestle Professional. The food giant does not disclose specific financial figures for Nestle Professional. However, in its annual report, Nestle said the unit's growth "was driven by the emerging markets, particularly China, the Philippines, the Indochina region, Middle East and Russia, whilst Western Europe and North America continued to face challenges in the out-of-home environment".
It added: "The strategic growth drivers; beverage solutions and desserts solutions, continued to perform well."
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By GlobalDataDavigel supplies frozen and chilled food in around ten markets in Europe.
