Nestlé S. A, the Swiss multinational food and drink processing conglomerate, has reportedly announced plans to sell Buitoni’s North American business to private equity firm Brynwood Partners VIII L.P. for an undisclosed amount.
Sources cite that the deal, which includes 240,000 sq. ft. Danville-based manufacturing facility is expected to close within the next 30 days. The deal also includes the rights to the Buitoni brand in Canada, the US, and Caribbean territories. The agreement is subject to customary US regulatory review.
Following the deal, Buitoni’s North American business will join Brynwood Partners’ newly-created firm Buitoni Food Company. The newly formed firm will be headquartered in Stamford and the Danville-based manufacturing facility, with around 525 full-time employees, will continue to aid the business.
Moreover, as per the agreement, Buitoni Food Company will manufacture Nestlé Toll House cookie dough products at the Danville-based manufacturing facility. The terms and conditions of the deal are yet to be disclosed by Nestle; however reliable sources confirmed that the deal values the business at USD 115 million.
Speaking on the deal, Henk Hartong III, CEO, and Chairman said that the company thrilled to add the renowned Buitoni brand, and their delicious sauces, pasta, and cheeses to the company’s investment portfolio.
He added that the Danville-based manufacturing facility would enable the company to quickly invest in new eating and culinary trends so that it can build on the strong foundation of Buitoni offerings. The company is looking forward to innovating and growing the Buitoni brand as customers seek out high-quality meals that can be conveniently prepared at home.
Previously, Brynwood Partners acquired Treasures, Stixx, DeMet’s Turtles, Flipz, Bit O Honey, Juicy Juice, Joseph’s Gourmet Pasta brands, and Nutrament. The acquisition of North American business is Brynwood Partners’ eighth transaction that it has completed with Nestlé.