Unilever seeks bidders for Ragú pasta sauce business

Unilever is seeking bidders for its Ragú pasta sauce business as part of its strategy to offload non-core assets as it continues to shift its focus towards home and personal care products.

The company has reportedly approached financial services firm Morgan Stanley to handle the proposed sale process.

The plan to divest the Ragú pasta unit comes on the heels of Unilever’s recent divestments in the food segment.

Last month, the Dutch giant agreed to divest its European meat snacks business to Jack Link’s.

Earlier this year, the company finalised the sale of its Royal pasta brand to Philippine food and beverage firm RFM.

Ragú is one of the leading Italian-style sauces and condiments brand in the US.

Three years ago, Unilever sold its licence of the Ragú brand in the UK and Ireland to Leeds-based private label food manufacturer Symington’s.

Prospective buyers for the pasta unit include Heinz, Barilla and JM Smucker, reported The Financial Times citing industry experts.

If a deal is set, the sale could fetch Unilever between $1.5bn and $2bn.

According to the publication, Unilever has also been considering a divestment of its olive oil business Bertolli.

In the recent past, Unilever has been shaping itself more as a personal care company than a food company, as it shifts focus to more profitable brands that allow it to expand its presence to various markets.

In 2013, the company sold the Skippy peanut butter brand to Hormel Foods, Wish-Bone and Western dressings to Pinnacle Foods and Turkish oil business to AarhusKarlshamn (AAK).