Nestle Sells Juicy Juice To Brynwood Partners

(RTTNews) - Nestle SA(NSRGY.PK, NSTR.L) has sold its Juicy Juice business to private investment firm Brynwood Partners LP, as part of the Swiss food giant's efforts to get rid of its under-performing brands in the US.

Financial details of the deal weren't disclosed, but Brynwood, in a statement said, its "the Firm's largest buy side transaction since it was founded in 1984." Brynwood Partners has completed six acquisitions from Nestle USA, with this acquisition being the third in the past 14 months.

Nestle's Chief Executive Paul Bulcke is trimming down Nestle's US portfolio by divesting of non-core and under-performing business as the company invests more in skin care and nutrition.

Launched in 1977, Juicy Juice brand markets 100% fruit juice and juice concentrates focused mainly at children. Nestle had acquired the business in 1986 when the demand for shelf-stable juices in the US was at its nascent stages. However, Juicy Juice has been impacted by declining sales for the past few years as parents have become more health conscious about the sugary drinks and its shelf life.

Henk Hartong, Senior Managing Partner of Brynwood Partners, said, "We look forward to bringing renewed focus and attention to this great brand that has, and continues to hold, a special place with families over many generations. By further leveraging the brand's nutritional and wellness attributes, we plan to continue providing our loyal customers with its high quality, great tasting products in innovative packaging formats."

Nestle is trading at $78.00, down $0.42 or 0.54%, on the OTC.