Nestle has agreed to acquire Kraft Foods' frozen pizza business in the US and Canada for $3.7bn in cash.
The business includes brands such as DiGiorno, Tombstone, California Pizza Kitchen, Jack’s and Delissio.
The business will come under Nestle US.
Nestle said the frozen pizza business provides a strategic pillar to its frozen food portfolio in the US and Canada, where it already exists in domain of prepared dishes and hand-held product categories under the Stouffer's, Lean Cuisine, Buitoni, Hot Pockets and Lean Pockets brands.
Nestle said the acquisition also strengthens its position in the frozen pizza category, and builds on its existing pizza capabilities and operations in Europe.
Nestle CEO Paul Bulcke said the acquisition will enhance Nestle's frozen food activities in North America, bringing together a selection of US and Canadian brands, research and development and route-to-market capabilities, which complement Nestle’s existing ice cream direct-store-delivery.
”With total sales of around Sfr3bn, Nestle will become the world leader in the attractive, fast-growing frozen pizza category," Bulcke said.