Kraft Foods (KFT) to Sell Majority Stake of Growing Natural Foods Brand, Back to Nature
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In accordance with its quest to separate the company, Kraft Foods (Nasdaq: KFT) will sell a majority stake in Back to Nature line of natural-foods products to Brynwood Partners.
The deal, set to close in October, shouldn't be over $125 million, reports the WSJ Wednesday morning.
Kraft will retain a 25 percent to 50 percent stake in the company. The deal structure implies that Kraft still sees value in the brand, but one that couldn't be unlocked via is massive corporate structure.
Annual sales for Back to Nature are $50 million to $75 million, with cookies, crackers, and trail mix sales rising at CAGR 20 percent the last three years.
Ahead of the bell, Kraft shares are flat.
The deal, set to close in October, shouldn't be over $125 million, reports the WSJ Wednesday morning.
Kraft will retain a 25 percent to 50 percent stake in the company. The deal structure implies that Kraft still sees value in the brand, but one that couldn't be unlocked via is massive corporate structure.
Annual sales for Back to Nature are $50 million to $75 million, with cookies, crackers, and trail mix sales rising at CAGR 20 percent the last three years.
Ahead of the bell, Kraft shares are flat.
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