Nestlé forms European pizza venture with private equity firm PAI

Illustration: Annelise Capossela/Axios

Nestlé announced a joint venture with private equity firm PAI Partners to house its European frozen pizza business, which generates nearly $350 million in annual sales.

Why it matters: The deal lets Nestlé push a low-growth business off its balance sheet, while also acceding to some shareholder demands that its product portfolio become healthier.

• It's also junk food déjà vu, as Nestlé and PAI did a similar deal for U.S. ice cream in 2019.

Details: The transaction is expected to close in the second half of 2023, pending regulatory approval, and would include European distribution of brands like Wagner, Buitoni and Garden Gourmet.

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