Nestlé SA will sell 60% of its French charcuterie and dough business Herta SAS to Casa Tarradellas SA, a Spanish family-run sausage and pizza company, to form a 40/60 joint venture, according to a Dec. 19 statement.
The Swiss food company said it will "retain and develop" the existing Herta vegetarian business as it continues to increase focus on plant-based offerings. Nestlé offers plant-based products through Garden Gourmet in Europe and Sweet Earth in the U.S.
The deal values Herta at €690 million and is expected to close in the first half of 2020. The sale is a result of Nestlé's strategic review announced in February.
The joint venture with Casa Tarradellas will include Herta charcuterie available in six European countries, as well as the Herta dough business in France and Belgium. The cold cuts and meat-based products and dough business had sales of €667 million in 2018. The JV will be established upon finalization of employee consultations where required, Nestlé said.
The joint venture will be incorporated in Spain and retain current operations and personnel.
The announcement comes less than two weeks after Nestlé agreed to sell its U.S. ice cream business that sells brands including Häagen-Dazs and Drumstick for $4 billion to Froneri Ltd., the Vevey, Switzerland-based company's joint venture with private equity firm PAI Partners.