Nestle Agrees to Sell Yinlu Food Businesses in China
November 25 2020 - 2:15AM
Dow Jones News
By Olivia Bugault
Nestle SA said Wednesday that it has agreed to sell its Yinlu
peanut-milk and canned-rice-porridge businesses in China to Food
Wise Co. for an undisclosed amount.
Under the agreement, Nestle unit Yinlu's five factories located
in the Chinese cities of Fujian, Anhui, Hubei, Shandong and Sichuan
will be sold to Food Wise, which is controlled by the family of
Yinlu's founder Chen Qingshui, Nestle said.
The deal should close by the end of the year, the Swiss
food-and-beverage giant said. "As part of the transaction, Nestle
will retain its ready-to-drink Nescafe coffee business and
distribute the products across most of the Greater China region,"
the company said.
Yinlu--in which Nestle acquired a 60% stake in 2011--had sales
of 700 million Swiss francs ($768.4 million) in 2019.
"The transaction allows Nestle to focus on key categories in
China: infant nutrition, confectionery, coffee, culinary, dairy and
pet care, capitalizing on the company's strong brands, digital
capabilities and innovation engine to drive growth," the company
said.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
November 25, 2020 02:00 ET (07:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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