Global food giant Heinz has agreed to sell its New Zealand poultry company, Tegel Foods, to Australia's Pacific Equity Partners, for an undisclosed sum.
The move was part of a plan to rid itself of underperforming businesses outside the United States.
Tegel's sales have fallen since it lost New Zealand's biggest chicken contract, to supply KFC fast food outlets.
No price for the sale was disclosed, but Heinz said it was hoping to gain $US1 billion ($NZ1.49 billion) from all its divestitures.
The sale was subject to the approval of the Overseas Investment Commission.
Chicago-based Heinz bought the Tegel business in 1992 as part of its purchase of Goodman Fielder, which also included Wattie's and Tip Top Ice Cream.
Heinz said it was also trying to sell its European seafood and frozen food operations as it looks to improve profit in that region, after completing a similar restructuring in its US business.
Heinz plans to focus on condiments and sauces; meals and snacks; and infant nutrition businesses.
- NZPA
Heinz sells Tegel to Pacific Equity Partners
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