Nestlé will sell its 10% stake in Givaudan, the Swiss fragrance and flavors supplier, the company announced today. The sale is being handled by Goldman Sachs and is expected to fetch as much as $1.2 billion.
Last month, Nestlé sold its weight management business Jenny Craig in North America and Oceania to a US-based private equity group North Castle Partners. The Jenny Craig business in France was not part of the transaction. Nestlé is also said to be looking for a buyer of its Power Bar business.
The moves are all part of Nestlé's strategy to focus on its core food business. The world's biggest food group cut its sales outlook earlier this year and said it would dispose of underperforming businesses to slim down its sprawling portfolio which spans Perrier bottled water, KitKat chocolate and Gerber baby food.
"Nestle is confirming its intention of better allocating its capital," said Vontobel analyst Jean-Pilippe Bertschy.
But does that plan include L'Oréal? Observers have speculated for months that Nestlé will sell its 30% stake in the world's largest cosmetics company as early as April 2014, when restrictions on selling the company loosen.