Kraft Foods has agreed to sell a majority stake in its Back to Nature brand of natural-food products to US private equity firm Brynwood Partners for an undisclosed amount.
Following the deal,Kraft will hold a minority stake between 25%and 50%.The brand will be held through a joint venture between Brynwood and Kraft.While Kraft will have board representation in the venture,Brynwood will manage every day operations.
The deal is expected to be completed in October 2012.
The Back to Nature brand,which was acquired by Kraft in 2003 for an undisclosed amount,makes cookies,crackers and pasta dinners using less-processed ingredients.
Kraft spokesman Michael Mitchell said the brand has annual sales of between$50m and$75m,but the sales of cookies,crackers and trail mix have increased at approximately 20%a year over the past three years.
This move comes as Kraft Foods announced its plan to split into two companies on 1 October 2012.Following this,Kraft's stake in Back to Nature will become part of Mondelez International,the global snacks firm that will be left after Kraft spins off its North American grocery business,Kraft Foods.
