Kraft to sell pizza business to Nestle

Kraft Foods has agreed to sell the assets of its North American pizza business to Nestle for a total consideration of $3.7 billion. The company estimates that its pizza business generated 2009 net revenues of $1.6 billion under U.S. Generally Accepted Accounting Principles.

The sale, which is subject to customary conditions including regulatory clearances, includes the DiGiorno, Tombstone and Jack's brands in the United States, the Delissio brand in Canada and the California Pizza Kitchen trademark license. It also includes two Wisconsin manufacturing facilities (Medford and Little Chute) and the right to take on the leases for the pizza depots and delivery trucks. Kraft Foods anticipates that approximately 3,400 employees will transfer with the business to Nestle. The transaction is expected to close in 2010.

Visit Kraft's website for more information about the sale.