Nestlé to sell its North American Buitoni business to US private equity firm

USA – Nestlé USA has agreed to sell its North American Buitoni business, one of the leading national brands in the refrigerated pasta, sauces and cheese categories to private equity firm Brynwood Partners VIII L.P., for an undisclosed sum.

Brynwood Partners said that it will acquire the business through its newly-formed portfolio company, Buitoni Food Company. The transaction includes the rights to the Buitoni brand in the US, Canada and the Caribbean territories as well as a 240,000 square foot manufacturing facility in Danville, Virginia.

The companies expect the deal to close by the third quarter of this year, subject to customary US regulatory review.  Upon closing of the transaction, Brynwood plans to integrate the pasta business into Buitoni Food Company, which will be headquartered in Stamford, Connecticut.

The company also plans to continue operating the Danville manufacturing facility, with its approximately 525 full-time employees, to support the business. Post-acquisition, the PE firm also noted that Buitoni Food Company will continue to manufacture Nestlé Toll House cookie dough products from the Danville facility under a long-term supply agreement.

“We are delighted to announce the formation of Buitoni Food Company,” said Henk Hartong III, Chairman and CEO of Brynwood Partners.

“We are thrilled to add the famous Buitoni brand, and its delicious pastas, sauces and cheeses to our investment portfolio. Buitoni has a rich history and Italian heritage that has delighted consumers for over 100 years.

“The Danville, VA facility will enable us to quickly invest in new culinary and eating trends so that we can build on the strong foundation of current Buitoni offerings.  We look forward to innovating and growing the Buitoni brand as more consumers seek out high quality meals that can be easily prepared at home.”

The acquisition of Buitoni brand by Brynwood Partners marks the eighth buyout the company has closed with Nestlé since 2003. The private equity firm has acquired the Flipz, DeMet’s Turtles, Treasures, Stixx, Juicy Juice, Bit O Honey, Nutrament and Joseph’s Gourmet Pasta brands from Nestlé.  

Brynwood Partners has a strong presence in the food & beverage industry having invested in companies like Hometown Food. In 2018, the company acquired a portfolio of brands (Pillsbury Shelf-Stable Baking Business, the Hungry Jack Brand) from The J.M. Smucker Company for approximately US$375 million.

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