Nestlé España announced on January 8 that it has signed an agreement to sell its La Cocinera frozen food business to Findus Spain. Terms of the transaction, which is subject to the approval of competition authorities, were not disclosed.
The divestment includes the La Cocinera brand and the Valladolid factory, where frozen products ranging from ready meals and side dishes to snacks and appetizers are made. The chilled dough products business, which distributes obleas, puff pastry, pie dough and other items under the same La Cocinera label, are not part of the deal.
Findus, owned by private equity groups and headquartered in the United Kingdom, employs more than 6,000 people and is regarded as one of Europe’s leaders in the retail frozen food manufacturing and distribution sectors. Ranked as the No. 1 branded player in Sweden, Norway, Finland and France, its product lines run the gamut from vegetables and side dishes to fish, seafood, ready meals and soups.
Vevey, Switzerland-headquartered Nestlé S.A., in what it calls an “ongoing portfolio review” process, has been selling off non-core assets and unloading underperforming operations since CEO Paul Bulcke took the helm a few years ago. Divestitures have included the Jenny Craig brand in North America, a nutrition bar business and holdings in a fragrance company.
In December it announced an agreement to sell its Nestlé México (Helados Nestlé) ice cream business to Grupo Herdez for Ps. 1.0 billion, or approximately $68.7 million. The deal includes an ice cream manufacturing facility in Lagos de Moreno, Jalisco, distribution equipment and freezers, as well as an exclusive long-term license to market and sell Nestlé’s ice cream brands in Mexico.
Last November Nestlé announced that is was “exploring strategic options for the development of its subsidiary Davigel SAS” in France. According to a statement posted on the 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.”
Davigel, based in Dieppe, 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.
