Unilever has signed an agreement to divest its North America pasta sauces business under the Ragu and Bertolli brands to Mizkan Group for nearly $2.15bn.
The annual turnover for Ragu and Bertolli brands is more than $600m.
The sale includes two production facilities including a sauce processing and packaging plant in Owensboro, Kentucky, and a tomato processing facility in Stockton, California.
Commenting on the development, Unilever North America president Kees Kruythoff said this sale represents one of the final steps in reshaping the company's portfolio in North America to deliver sustainable growth for Unilever, and enables the company to sharpen its focus within the foods business.
"The Ragu and Bertolli business leads the pasta sauce category in the United States, and we believe that the potential of both brands can be fully realized with Mizkan," Kruythoff added.
Subject to regulatory approval and customary closing conditions, the deal is expected to conclude by the end of June this year.
Image: The annual turnover for Ragu and Bertolli brands is more than $600m. Photo: courtesy of yenhoon.
