Kraft Heinz to offload Italian baby food business - report
Updated : 14:36
US foods giant Kraft Heinz is looking to sell baby food brand Plasmon in a deal worth potentially as much as €700m.
The company is understood to have already launched a sale process, and expects to receive preliminary bids by the end of next week.
According to Reuters, which cited two unnamed sources, private equity firms PAI and Cinven could be interested in the business. Italian newspaper Il Sole said JP Morgan had been hired to advise on the sale.
None of the parties mentioned in the reports commented.
Plasmon, which was founded in 1902, is an Italian business selling a range of baby foods. Its annual revenues are around €200m, with core earnings around €50m, according to Reuters.
Earlier this week, Kraft Heinz confirmed it would restate nearly three years of results after an internal investigation - itself prompted by a subpoena from the Securities and Exchange Commission - threw up evidence of what it termed "misconduct" in procurement operations.
Kraft Heinz is the world’s fifth-biggest food and drinks company. Its brands including Philadelphia cheese, HP Sauce and Amoy noodles, as well as its core Kraft and Heinz products.