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.
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