Mondelez International Inc. is considering selling its Philadelphia soft cheese arm in a "multibillion-pound" transaction as it intends to shift its focus on faster-growing chocolate and biscuits brands, The Telegraph reported June 1, citing sources.
The unit reportedly generates revenues of about $1 billion. Mondelez assumed the rights to Philadelphia across mainland Europe and the U.K. after the snacks giant was spun out of The Kraft Heinz Co., formerly Kraft Foods, in 2012, according to the report.
Sources told the newspaper that bankers and private equity firms are already planning the sale, with rivals Groupe Lactalis SA and Kraft Heinz, as well as former Unilever PLC spreads business Upfield, seen as potential buyers.
Meanwhile, a Mondelez spokesman reportedly told the news outlet that "[Philadelphia] is a high-quality business for us and provides strong margin and cash flow, as well as scale benefits in several markets."
The report comes shortly after Mondelez closed the sale of its Kraft-branded cheese business in the Middle East and Africa region to privately held Danish dairy company Arla Foods.
It also comes about four years after Mondelez restructured its grocery and cheese brands into a separate business, which triggered breakup speculations, The Telegraph said.