FrieslandCampina to launch sale of infant nutrition brand Friso – sources

HONG KONG, Dec.22 (Reuters) – Dutch dairy cooperative FrieslandCampina plans to launch the sale of its infant nutrition brand Friso in the coming weeks as part of a deal that could value the brand between $ 2 billion and $ 2.5 billion dollars, according to three people familiar with the situation told Reuters.

JPMorgan, advising FrieslandCampina on the sale, has sent teasers to potential buyers, including private equity firms and strategic suitors, the sources said, adding that the formal process would likely begin in early January.

A spokesperson for FrieslandCampina said the company was looking for “strategic options” for the Friso brand.

“Given that the large and important infant nutrition markets, especially China, are developing rapidly at this time, the goal of our strategic assessment process is to ensure that the Friso business can continue to grow in such a way. optimal in the future, ”the company said in response to Reuters inquiries about the sale process.

JPMorgan declined to comment.

With a history of over 50 years, Friso is now a global infant nutrition brand with a presence in more than 25 countries across Asia, Europe and the Middle East, according to its website. It produces Friso Mum, Friso Gold and Friso Prestige infant formula.

FrieslandCampina said in its semi-annual report that revenue from its specialty nutrition unit, which includes Friso, declined 14.9% to 516 million euros ($ 581.9 million) with profit from operating down 84.2% year over year.

The cooperative attributed the decline in the unit’s performance to the closure of the border between Hong Kong and mainland China, increased competition from domestic players in China, and negative price developments due to the weaker dollar and rising commodity prices.

The sale of Friso Gold in mainland China and Hong Kong, in particular, has declined, he said. In contrast, sales of Friso Prestige, its formula in the ultra-premium segment, increased in China.

British consumer goods maker Reckitt Benckiser Group Plc (RKT.L) sold its infant formula and infant nutrition (IFCN) business in China to investment firm Primavera Capital Group in June for enterprise value of $ 2.2 billion. Read more

($ 1 = 0.8868 euros)

Reporting by Kane Wu in Hong Kong; Additional reporting by Toby Sterling in Amsterdam; Editing by Jacqueline Wong

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