SYDNEY, AUSTRALIA — Quadrant Private Equity has reached an agreement to acquire the local kiwi confectionery brands of Nestle New Zealand, a unit of Vevey, Switzerland-based Nestle S.A. Financial terms were not disclosed.
Nestle said its decision to exit the sugar confectionery category in New Zealand is part of a broader plan to focus on its major chocolate, baking and medicated lozenge brands in the region.
As part of the agreement, Nestle said it will sell its Mackintosh’s, Heards, Black Knight and Fabulicious Red Licorice brands to Quadrant Private Equity. Quadrant already owns the RJ’s and Darrell Lea confectionery brands.
Nestle also said it will sell its other Oceania brands, Life Savers and Oddfellows, to Quadrant.
In addition to the sale of the confectionery brands, Nestle said it will eliminate some jobs at its facility in Wiri, Auckland, New Zealand. Moving forward, the plant will focus on the production of Nestle’s culinary products, including Maggi soups, recipe mixes and products for food service, Nestle said.
“This doesn’t reflect on the personal efforts of our staff,” said Martin Brown, general manager of Nestle Confectionery. “It has been based on a careful consideration of how to focus our activities and resources, recognizing that our sugar confectionery range in New Zealand is largely made up of smaller local brands.”