Nestle SA sells 10 per cent stake in flavors-and-fragrances maker Givaudan $1.3 billion

Nestle to sell 10 pc stake in Givaudan for $1.3 billion

5:39 AM, 9th December 2013
Nestle business news

ZURICH, SWITZERLAND: Nestle SA, world’s biggest food company by revenue, is selling its 10 per cent stake in flavors-and-fragrances maker Givaudan SA valued at nearly 1.2 billion Swiss francs ($1.3 billion) as the company continues to pare back its operations. The shares are being sold through a private placement to institutional investors, and not on the open market.

The sale comes as Nestle is grappling with its slowest annual growth since 2009 and is looking to unload underperforming businesses. The company, which is reviewing its nearly 2,000 units, has already sold most of its Jenny Craig weight-management business for an undisclosed sum.

There is also speculation that the company could sell its 29.8 per cent stake in French cosmetics company L’Oreal SA. A deal between Nestle, which has owned a stake since 1974, and L’Oreal’s founding family expires in April, giving the food company more flexibility in handling the investment. The agreement over the stake, valued at about €22 billion ($30 billion), requires that a selling party give the other first option to buy its shares.

 

© Dow Jones News

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