CityAM reports that Nestle has confirmed that it is in exclusive talks to sell its frozen food business Davigel to food service operator Brakes Group as part of its drive to focus on its core operations.
Nestle owns many major household brands including Cheerio’s cereal and Kit Kat chocolate bars, and has been disposing of non-core businesses as it seeks to increase sales and profits by focussing on its key products.
Nestle announced in November 2014 that it was exploring a sale of Davigel, which makes meals and desserts for restaurants, schools and other institutional customers. The business generated revenues of roughly £500 million in 2013.
Brakes is owned by buyout fund Bain Capital, and such a deal would provide a major boost to its presence in France, as well as enabling it to enter Belgium and Spain.