Global packaged food group Kraft Heinz is working with investment bank Houlihan Lokey to sell its Italy-based infant food product brand Plasmon, two sources close to the matter said.
Kraft Heinz tried to sell the Italian business back in 2019 but eventually decided to keep it.
Binding offers are expected by March, one of the sources added.
The 123-year-old Plasmon sells a range of products including first milk, homogenised baby food, pasta and fruit compote for babies.
Plasmon is a well known brand for baby food in Italy, where it realises most of its revenues. However, it has felt the impact of low birth rates in Italy over the past few years.
Recently, Kraft Heinz forecast annual profit below estimates and missed quarterly sales estimates, as the packaged food maker struggles with sluggish demand for its products such as Lunchables and packaged meat following price hikes.
The fourth straight quarter of revenue miss pushed the company’s shares down about 5% in premarket trading.
Kraft Heinz’s overall volumes fell 4.1 percentage points in the quarter ended 28 December, while prices were up 1 percentage points from the same period a year ago. Volumes were down 3.4 percentage points and prices were up 1.2 percentage points in the prior quarter.