Nestlé has agreed to spin off Buitoni, its North American pasta business, as a separate company, as part of an ongoing effort to concentrate on core businesses.
Buitoni, a brand of refrigerated pastas, cheeses, sauces and other Italian foods, will be bought by private-equity firm Brynwood Partners. The deal is expected to close in the next 30 days. Terms were not disclosed, but the Wall Street Journal reported that the deal values Buitoni’s North American business at $115 million.
The sale will include the Buitoni processing facility in Danville, Va., which has 525 full-time employees. That facility will make Nestlé Toll House Cookies on a contract basis.
This is the second major spinoff for Nestlé in less than a year. It transferred its North American ice cream business, including Häagen-Dazs and Drumstick, to a joint venture it owns with another company last December.
The deal is the eight one that Nestlé has made with Brynwood for a spinoff. Previous transactions include Stixx, Juicy Juice and Joseph's Gourmet Pasta.
