Nestlé is in talks to sell its baby food unit in France to the Parisian private equity group FNB. The potential sale, which is expected to close by the first half of 2024, will not affect its infant formula line. According to Nestlé, this move will allow the company to focus more resources on its infant formulas, which is a strategic and historical pillar for the group. The specific financial details of the potential sale were not disclosed.
Around 230 people are employed in the production and marketing of the affected baby food brands, and Nestlé has assured that the transaction would “have no impact on the jobs concerned”, nor change the company’s relationship with its customers, partners, or local suppliers.
The sale would mark FNB’s second purchase from Nestlé France, following their acquisition of the mashed potato brand Mousline in 2022. In addition to this, FNB entered the drinks market last year, acquiring a majority stake in coffee supplier Cafés Legal. However, FNB was unable to comment on the news at the time of writing.
The potential sale of Nestlé’s baby food unit in France follows the company’s plan to focus on its infant formula line. This strategic decision will allow Nestlé to drive more resources to its infant formulas, which is considered a strategic and historical pillar for the group.
The company’s French arm confirmed its intention to hand over its line of baby products, including NaturNes baby pots, flavoured cereal powders Babicao and Babivanille, and P’tit yogurt pots, but not its infant formula line. The deal is expected to close by the first half of 2024, subject to regulatory approval and the negotiation of sale agreements.
Furthermore, the potential sale of Nestlé’s baby food unit in France will not impact the jobs related to its production and marketing and will not change the company’s relationships with its customers, partners, or local suppliers. Instead, the affected plants will continue to operate as part of Nestlé Group until an agreement with FNB is finalized.
In summary, the potential sale of Nestlé’s baby food unit in France reflects the company’s strategic decision to focus more on its infant formula line. This move aligns with Nestlé’s goal to drive more resources and innovation towards its infant formulas, which are a strategic and historical pillar for the group.
