Swiss food major Nestle is reportedly engaged in advanced level talks to sell its frozen food unit Davigel to Brakes Group, which is owned by Massachusetts based buyout fund Bain Capital.
A person familiar with the situation told Reuters that the new deal is expected to be signed soon.
Davigel currently provides frozen and chilled meals and ice cream to restaurants and hospitals. Nestle acquired this frozen food unit business in 1989.
The new development is expected to raise between €200m and €300m ($211m-317m).
Switzerland-based financial services firm Credit Suisse is handling the sale for Nestle.
Nestle earlier announced that it was seeking to divest underperforming businesses. During the last two years, the company has sold its PowerBar and Musashi brands to US group Post Holdings, and its US frozen pasta business to Brynwood Partners.
The company has also sold its Jennie Craig business and a 1% stake in fragrance and flavor maker Givaudan over the period, added the news agency.
In December 20104, Grupo Herdez agreed to acquire Nestlé's ice cream business in Mexico, Helados Nestlé, for around MXN1bn ($68.7m).
Image: Davigel offers frozen and chilled meals and ice cream to restaurants and hospitals. Photo: courtesy of Nestlé.
