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Kraft Heinz is said to consider US$1b Complan sale in India
[MUMBAI] Kraft Heinz Co is considering a sale of children's milk drink brand Complan in India, which could fetch about US$1 billion, people familiar with the matter said.
Kraft Heinz is working with an adviser to gauge interest in the business, according to the people, who asked not to be identified because the matter isn't public. The brand could attract local companies and private equity firms, the people said.
Consumer acquisitions in India have more than doubled this year to US$7.7 billion, up from US$3.4 billion during the same period in 2017, data compiled by Bloomberg show. Kraft Heinz is bringing Complan to market as UK pharmaceutical firm GlaxoSmithKline Plc weighs selling its stake in its Indian consumer health subsidiary, which owns malted milk drinks brand Horlicks.
Deliberations are at an early stage, and Kraft Heinz could decide to keep the business, the people said. A representative for Pittsburgh-based Kraft Heinz declined to comment.
Kraft Heinz bought Complan from Glaxo in 1994. Controlled by Warren Buffett's Berkshire Hathaway Inc. and private equity firm 3G Capital, Kraft Heinz reported better-than-expected profit in May. Management said it's still eyeing acquisitions after Unilever NV spurned its takeover bid last year.