Heinz is close to buying HP Foods, maker of Lea & Perrins and HP Sauce from French diary giant Danone, according to the Daily Telegraph newspaper.
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The deal, worth £470m (US$858m) could be announced as early as this morning, the paper said.
In March, Danone charged investment bank Lazard with handling an auction of the business. Lazard, which declined to comment, is understood to have approached a select few possible trade and private equity buyers.
They are thought to have included New York-based McCormick, the world’s biggest spice company. Britain’s Premier Foods and Associated British Foods – which makes Twinings Tea and Ryvita and owns the Primark discount clothing brand – were also thought to be interested.
Danone, which also owns Volvic and Evian mineral waters, bought HP Foods for £199m from the Hanson conglomerate in 1988.
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By GlobalDataDespite concerns over the ability of the French firm to develop such iconic British brands, HP has flourished. Heinz is expected to give similar support after a decision to concentrate on ketchup, condiments and sauces as well as infant nutrition and ready meals.
The American firm operates from five centres in the UK, employing more than 3,000.
Last month, Heinz said it would offload several weaker European businesses, including John West fish, Weight Watchers, Linda McCartney healthfoods and Harry Ramsden fish and chips.
UBS, the investment bank advising Heinz, is expected to start the sales process later this year.
