Kraft Foods will sell its North American yoghurt business to Canada's CoolBrands International for approximately $59 million, "accelerating Kraft's shift toward businesses in which [it has] sustainable competitive advantage."

Food & Drink Weekly, Dec 27, 2004

Kraft Foods will sell its North American yoghurt business to Canada's CoolBrands International for approximately $59 million, "accelerating Kraft's shift toward businesses in which [it has] sustainable competitive advantage." The transaction includes licenses for Breyers, Creme Savers and Light 'n Lively brands and Kraft's manufacturing facility in North Lawrence, New York; some 147 Kraft plant employees will join CoolBrands.

The transaction, subject to regulatory approval, is expected to be completed in the first quarter of 2005. Kraft anticipates that the sale will result in an after-tax book loss of approximately $12 million and generate cash proceeds of $42 million.