Baring, Junlebao Advance in Bidding for $2 Billion Friso
(Bloomberg) -- Baring Private Equity Asia and a consortium comprising Junlebao Dairy Co. and Sequoia Capital China are among the shortlisted bidders for Royal FrieslandCampina NV's infant nutrition brand, according to people familiar with the matter.
Potential suitors for Friso also include buyout firm DCP Capital and strategic rivals China Mengniu Dairy Co. and Inner Mongolia Yili Industrial Group Co., the people said. The sale process is moving into a second round of bidding, and could value the infant formula business at about $2 billion, the people said, asking not to be identified as the information is private.
Deliberations are ongoing, other suitors could still emerge and there's no certainty the bidding will result in a transaction, the people said.Â
Representatives for Baring, DCP, Mengniu, Royal FrieslandCampina and Sequoia China declined to comment. Representatives for Junlebao and Yili didn't immediately respond to requests for comment.Â
Royal FrieslandCampina is working with JPMorgan Chase & Co. on the disposal, Bloomberg News reported in January. The Dutch food group put its infant formula business under strategic review last year as it pushed ahead with efforts to streamline its business. Chief Executive Officer Hein Schumacher citied the rapid evolution of key markets for infant nutrition, particularly China, in announcing the review, according to a statement.
The potential deal would follow Reckitt Benckiser Group Plc's sale of its baby-nutrition business in Greater China to Primavera Capital Group for $2.2 billion last year.
Friso manufactures formula for infants and toddlers and its products are available in 25 countries, according to its website. Euromonitor International had forecast the global market for infant formula to expand to $59.5 billion by this year, from $54.7 billion in 2020.
©2022 Bloomberg L.P.
With assistance from Bloomberg
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