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HONG KONG, Dec 22 (Reuters) – Dutch dairy cooperative FrieslandCampina plans to kick off the sale of its Friso infant nutrition manufacturer in the coming weeks in a deal that could worth the manufacturer at $2 billion to $2.5 billion, three people familiar with the problem explained to Reuters.
JPMorgan, advising FrieslandCampina on the sale, has sent out teasers to possible prospective buyers such as personal equity corporations and strategic suitors, the folks said, incorporating the official process will most likely commence in early January.
A FrieslandCampina spokesperson claimed the firm was looking into “strategic choices” for the Friso model.
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“Specified substantial, essential marketplaces for infant nutrition, in particular China, are producing swiftly at the minute, the purpose of our strategic evaluation course of action is to assure that the Friso organization can proceed to mature optimally in the long term,” the organization reported in response to Reuters’ queries about the sale process.
JPMorgan declined to remark.
With a historical past of more than 50 many years, Friso is now a international infant diet brand with a existence in above 25 countries across Asia, Europe and the Middle East, according to its website. It makes Friso Mum, Friso Gold and Friso Status milk formulation.
FrieslandCampina said in its half-yr report that income of its specialised nutrition device, which includes Friso, lessened by 14.9% to 516 million euros ($581.9 million) with running revenue down 84.2% yr-on-calendar year.
The cooperative attributed the unit’s declining efficiency to the closure of the border in between Hong Kong and mainland China, enhanced levels of competition from domestic players in China and destructive price growth owing to the declining dollar and improved uncooked substance price ranges.
The sale of Friso Gold in mainland China and Hong Kong, in particular, lowered, it said. Nonetheless, income of Friso Prestige, its formula in the extremely-premium segment, grew in China.
British purchaser items maker Reckitt Benckiser Team Plc (RKT.L) in June marketed its infant method and little one nutrition (IFCN) business in China to expense business Primavera Money Group for an enterprise value of $2.2 billion. browse additional
($1 = .8868 euros)
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Reporting by Kane Wu in Hong Kong Extra reporting by Toby Sterling in Amsterdam Editing by Jacqueline Wong
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