Kraft Foods Inc. has agreed to sell its yogurt business to CoolBrands International Inc. for about $59 million.
The business, which includes licenses for the Breyers, Crème Savers and Light ‘n Lively brands, is estimated to generate approximately $90 million in 2004 revenue.
The move aligns with Kraft’s strategy to shift toward businesses that have a sustainable competitive advantage, Kraft’s President, North America Commercial, Dave Johnson, said in a statement.
As part of the deal, CoolBrands acquires Kraft’s manufacturing facility in North Lawrence, NY, where about 147 Kraft employees will join CoolBrands.
The deal is expected to close in the first quarter of 2005. Kraft said the sale will result in a loss of about $12 million and generate cash proceeds of $42 million.
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