Nestlé announced on November 14 that it is “exploring strategic options for the development of its subsidiary Davigel SAS” as part of an ongoing portfolio review. According to a statement posted on the Vevey, Switzerland-headquartered company’s website: “This mainly involves identifying a partner to help Davigel in its next stage of growth while safeguarding the best interests of employees, customers and shareholders.”
Speculation that Nestlé was contemplating the sale of the unit was initially reported by Reuters in February. Davigel, based in Dieppe, France, employs more than 3,000 people at three factories that produce fish dishes, value-added vegetables, meat- and poultry-based ready meals, sauces and pastry products. Its extensive product line, much of it developed by in-house chefs, is in the range of 1,500 items.
Acquired by Nestlé in 1989 from Buitoni, the Nestlé Professional unit is a major supplier of frozen and chilled meal products to restaurants as well as hospitals and healthcare institutions in France and over 10 other countries in Europe and beyond. Approximately 990 million meals are produced and served to patients annually. Last year the company generated turnover of approximately EUR 750 million.
According to the Reuters report published earlier this year, the sale of Davigel could fetch approximately EUR 300 million. Speculation about possible buyers at the time ranged from Sodexho and Brake Brothers to the Booker Group and a number of private equity firms.
