VEVEY (dpa-AFX) - Nestlé (NSRGY.PK, NSTR.L) said that it has agreed to sell its Yinlu peanut milk and canned rice porridge businesses in China to Food Wise Co. Ltd, a company controlled by the family of Yinlu founder Chen Qingshui. The companies did not disclose the financial terms of the transaction.
The deal covers all of Yinlu's operations, including its five factories in Fujian, Anhui, Hubei, Shandong and Sichuan. Yinlu brands had sales of 700 million Swiss francs in 2019.
As part of the deal, Nestlé will retain its ready-to-drink Nescafé coffee business and distribute the products across most of the Greater China Region.
Yinlu will continue to manufacture the Nescafé ready-to-drink products for Nestlé and will distribute the products in several provinces. Yinlu will continue to manufacture and sell Nestea products under license from Nestlé.
The transaction is expected to close by the end of this year.
Copyright RTT News/dpa-AFX
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