Brynwood Partners to acquire North American Buitoni business of Nestlé

Buitoni Food Company, a newly formed portfolio company of Brynwood Partners VIII, has agreed to acquire the North American Buitoni business from Nestlé USA.

Brynwood Partners VIII is a subsidiary of US-based private equity investment firm Brynwood Partners.

Financial details of the deal have not been divulged by either company.

Brynwood Partners chairman and CEO Henk Hartong said: “We are delighted to announce the formation of Buitoni Food Company.

“We are thrilled to add the famous Buitoni brand and its delicious pastas, sauces and cheeses to our investment portfolio. Buitoni has a rich history and Italian heritage that has delighted consumers for over 100 years.

Buitoni is a national brand that offers refrigerated pasta, sauces and cheese categories.

According to the deal, Buitoni Food Company will acquire a 240,000ft² manufacturing facility in Danville, Virginia, as well as the rights to the Buitoni brand in the US, Canada and the Caribbean territories.

Buitoni Food Company will retain approximately 525 full-time employees working at the Danville facility.

Completion of the deal is expected over the next 30 days, subject to customary US regulatory review process.

Upon completion of the deal, Buitoni Food Company will produce Nestlé Toll House cookie dough products from the Danville facility under a long-term supply agreement.

Brynwood Partners president, CFO and COO Ian MacTaggart said: “On behalf of everyone at Brynwood Partners, I would like to sincerely thank the Nestlé team for working with us on another corporate carve-out.

“This marks the eighth transaction we have completed with Nestlé and we look forward to continuing our relationship.”

In July 2018, JM Smucker Company signed a definitive agreement to sell its US baking business to Brynwood Partners’ subsidiaries Brynwood Partners VII and Brynwood Partners VIII for $375m.