Dutch establishment Wessanen will divest its juice business American Beverage Corporation in the US to Brynwood Partners, in a $55m deal.
American Beverage produces and markets ready to drink cocktails, non-alcoholic cocktail mixers, and fruit drinks under various brands including Little Hug and Daily's.
Upon completion of the deal, Brynwood plans to consolidate Little Hug with Juicy Juice, a brand it acquired from Nestlé in 2014, The Wall Street Journal reported.
Brynwood Partners senior managing partner Henk Hartong said that Brynwood will be able to combine shipments of its bulky products, a benefit Juicy Juice lost when it separated from Nestlé's shipping network, upon consolidating Little Hug and Juicy Juice brands.
Little Hug generates $125m in annual sales, while Juicy Juice generates $275m in sales annually.
The sale is in line with Wessanen's strategy of cutting down its brand portfolio in order to focus on the production of healthy and sustainable food.
Besides American Beverage brands, Brynwood will also acquire Wessanen's manufacturing facilities in Arizona and Pennsylvania.
