FrieslandCampina to kick off sale of Friso infant nutrition brand – sources – Reuters
HONG KONG, Dec 22 (Reuters) – Dutch dairy cooperative FrieslandCampina plans to kick off the sale of its Friso infant nutrition brand in the coming weeks in a deal that could value the brand at $2 billion to $2.5 billion, three people familiar with the situation told Reuters.
JPMorgan, advising FrieslandCampina on the sale, has sent out teasers to potential buyers including private equity firms and strategic suitors, the people said, adding the official process will likely start in early January.
A FrieslandCampina spokesperson said the company was researching "strategic options" for the Friso brand.
"Given large, important markets for infant nutrition, especially China, are developing rapidly at the moment, the goal of our strategic evaluation process is to ensure that the Friso business can continue to grow optimally in the future," the company said in response to Reuters' queries about the sale process.
JPMorgan declined to comment.
With a history of more than 50 years, Friso is now a global infant nutrition brand with a presence in over 25 countries across Asia, Europe and the Middle East, according to its website. It produces Friso Mum, Friso Gold and Friso Prestige milk formulas.
FrieslandCampina said in its half-year report that revenue of its specialised nutrition unit, which includes Friso, decreased by 14.9% to 516 million euros ($581.9 million) with operating profit down 84.2% year-on-year.
The cooperative attributed the unit's declining performance to the closure of the border between Hong Kong and mainland China, increased competition from domestic players in China and negative price development due to the declining dollar and increased raw material prices.
The sale of Friso Gold in mainland China and Hong Kong, in particular, decreased, it said. However, sales of Friso Prestige, its formula in the ultra-premium segment, grew in China.
British consumer goods maker Reckitt Benckiser Group Plc (RKT.L) in June sold its infant formula and child nutrition (IFCN) business in China to investment firm Primavera Capital Group for an enterprise value of $2.2 billion. read more
($1 = 0.8868 euros)
Our Standards: The Thomson Reuters Trust Principles.
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved
