Companies for Sale

Weekly Corporate Growth Report, Sep 20, 2004

Kraft Foods has placed its Breyer's yogurt brand on the auction block. Kraft has hired Citigroup Inc. to conduct the sale process. Breyer's yogurt has annual sales of about $100 million. In comparison, General Mills generates revenues of about $1 billion from Yoplait, Colombo, and other yogurt brands. The Breyer's brand for yogurt was split from the Breyer's ice cream brand, which Kraft sold to Unilever PLC in 1993. Analysts have speculated that Kraft may sell other small units with limited growth potential. Such assets sales might include Minute Rice, Stove Top Stuffing, and Claussen Pickles.

General Electric is considering the sale of its back-office services business in India. The GE Capital International Services unit supports about 30 of GE's units in the US, Europe, and Asia, providing services such as financing, accounting, and call centers. The unit could sell for about $1 billion. Convergys and Hewlett-Packard are seen as potential acquirers.

Canadian aluminum giant Alcan Inc. is exploring a possible sale of its rolled-products business. Alcan, which has also considering publicly spinning off the unit, is privately soliciting interest from private equity firms including Kohlberg Kravis Roberts & Co, and Blackstone Group. The rolled-products operation, which makes the metal for the beverage can, car parts, and foil industries, generates about $6 billion in annual sales and could sell for $4 billion to $5 billion.

Retail Brand Alliance is seeking to sell Casual Corner Group for $250 million to $300 million. Casual Corner operates women's clothing stores under the Petite Sophisticates and Casual Corner names. Casual Corner Group sells its own clothing line, Casual Corner's Essentials. Retail Brand Alliance is also seeking to sell its Carolee Designs subsidiary, which is expected to sell for $30 million to $40 million.