LONDON/ZURICH Feb 3 Food group Nestle
is selling its sports nutrition business under the PowerBar and
Musashi brands to U.S. group Post Holdings, the Swiss
company said, in its drive to shed underperforming assets.
The world's biggest food company is reviewing its portfolio
to identify brands to be improved or sold, having already
offloaded the bulk of its Jenny Craig weight-loss business in
Several consumer goods companies are pruning their
portfolios as faltering economies have made trading more
difficult worldwide. Moody's Investors Service said in a recent
report that these reviews could lead to a wave of mergers and
acquisitions among food producers.
"We have an ongoing process of portfolio review and this
decision came out of that," a Nestle spokeswoman said in an
emailed statement. "The divestment allows Nestle Nutrition to
focus more closely on the core elements of our business."
She declined to reveal the financial details, but Kepler
Chevreux analyst Jon Cox estimates that Powerbar and Musashi
have combined annual sales of about 200 million Swiss francs
"As a result, Post Holdings potentially paid up to 400
million Swiss francs for the businesses," he said.
Reuters reported in September that Nestle was looking to
sell its PowerBar brand.
A statement from Post Holdings said that the company expects
the acquisition to boost sales in its active nutrition business
to about $550 million a year. It added that it expects to fund
the acquisition from cash reserves.
Nestle reports full-year results on Feb. 13.