June 11, 2020
Nestlé has thoughtfully decided to separate Buitoni, its North American pasta business, as a separate entity. This decision is a part of an ongoing effort to concentrate more on the company’s core businesses.
Private-equity firm, Brynwood Partners, will take on with Buitoni brand of refrigerated pastas, cheeses, sauces and other Italian foods. In coming 30 days, the deal is set to be finalized and closed.
Wall Street Journal informed that the deal values $115 million of Buitoni’s North American business at the closure.
The sale will include the Buitoni processing facility in Danville, Va having 525 full-time employees. That facility will make Nestlé Toll House Cookies on a contract basis.
Buitoni being the second major spinoff by Nestlé in less than a year, the first was its North American ice cream business, including Häagen-Dazs and Drumstick, to a joint venture it owns with another company in December 2019.
The deal ranks eighth that Nestlé has made with Brynwood as a spinoff. Previous transfer of businesses includes Stixx, Juicy Juice and Joseph’s Gourmet Pasta.