Heinz has received an offer and is in advanced negotiations with Lehman Brothers Merchant Banking for the sale of its European seafood business.
The sale, which would be subject to approval from European authorities, would include brands such John West, its canned tuna and seafood brand in the UK and Ireland.
Although Heinz did not disclose financial details, reports suggest that the offer could be approximately E450m.
According to Heinz, its European seafood business has approximately 5,000 employees and annual sales of more than E400m. It produces more than 400 million cans of seafood products a year.
William R Johnson, Heinz chairman, president and chief executive officer, said: “The proposed sale of our European seafood business is consistent with our global growth strategy to drive sales and earnings in three core categories.”
He added: “Over the past three years, Heinz has derived multiple benefits from a similar plan to simplify its portfolio in North America and the company believes it can improve performance in Europe through a similarly more focused portfolio of strong brands.”
The company revealed in September last year that it was planning to sell its European seafood and frozen food businesses as part of a strategic plan to improve its performance in Europe.
The sale, which would be subject to approval from European authorities, would include brands such John West, its canned tuna and seafood brand in the UK and Ireland.
Although Heinz did not disclose financial details, reports suggest that the offer could be approximately E450m.
According to Heinz, its European seafood business has approximately 5,000 employees and annual sales of more than E400m. It produces more than 400 million cans of seafood products a year.
William R Johnson, Heinz chairman, president and chief executive officer, said: “The proposed sale of our European seafood business is consistent with our global growth strategy to drive sales and earnings in three core categories.”
He added: “Over the past three years, Heinz has derived multiple benefits from a similar plan to simplify its portfolio in North America and the company believes it can improve performance in Europe through a similarly more focused portfolio of strong brands.”
The company revealed in September last year that it was planning to sell its European seafood and frozen food businesses as part of a strategic plan to improve its performance in Europe.
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