Danone, the French foods group, said on Wednesday that it had agreed to sell its Italian cheese and ham unit, Galbani, to BC Partners, a private equity fund, for E1.02bn.
Galbani, a major player in cured meats, has a turnover of E1.1bn. Danone said it would be taking a E207m vendor loan to facilitate the sale.
The French food company is taking the step to sell Galbani in order to refocus on its core businesses. It hopes that the withdrawal from Galbani will significantly improve the Group's key financial indicators : organic growth in turnover, operating margins and return on invested capital. The transaction is still subject to regulatory approval in Europe.