Kraft Foods will sell its U.K. desserts business to Premier Foods for $135 million. The sale includes Bird’s custard, Angel Delight and Dream topping brands, whose 2003 sales totaled $72 million.
The deal is expected to close first-quarter 2005. Premier’s brands include Cadbury’s, Rowntreee and Cross & Blackwell; its first-half 2004 sales were GBP 426 million (about $818 million).
The sale is part of Kraft’s focus on large-scale, core brands as part of its “sustainable growth plan.” Last month Kraft announced plans to sell its U.S. confections business (including Life Savers and Altoids) to Wm. Wrigley Co. for $1.5 billion (Nov. 16 Xtra). That deal should be complete by mid-2005.
Northfield, IL-based Kraft will trim 120 staffers from its Banbury, U.K., plant once production shifts to Premier (by first-quarter 2006). Kraft will continue to make instant coffee at that plant.
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