Heinz to buy Danone's HP Foods, Lea and Perrins

20th June 2005, Comments 0 comments

PARIS, June 20 (AFP) - The French food group Danone said on Monday that condiment food giant Heinz will buy its sauce operations, HP Foods in Britain and Lea and Perrins in the US, for about EUR 700 million.

PARIS, June 20 (AFP) - The French food group Danone said on Monday that condiment food giant Heinz will buy its sauce operations, HP Foods in Britain and Lea and Perrins in the US, for about EUR 700 million.

Danone said that it would book a capital gain of more than EUR 450 million this year.

"It is not a surprise, since we have already said these past few years that the sauces were not essential operations for us," said Emmanuel Faber, the group's chief financial officer in a telephone conference with reporters.

The agreement also is expected to give Heinz a license to use in Europe the Amoy brand of Chinese sauces, currently held by Danone Asia.

The two companies, HP Foods and Lea and Perrins, have the leading brands for Worcester sauces and brown sauces in Britain and the United States, and last year posted sales of about EUR 240 million.

The two brands are sold in more than 75 countries.

The deal with Heinz, which specializes in sauces and condiments in the food sector, will enable Danone to focus on fresh milk products, drinks and biscuits, three areas where Danone "hold the leading or co-leading position in the global market," the group said.

Danone said the sale was subject to different authorizations including the approval of local anti-trust regulators.

© AFP

Subject: French news

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