Nestle Agrees to Sell Chinese Yinlu Business to Food Wise (1)

Nestle SA agreed to sell its Yinlu peanut milk and canned rice porridge businesses in China to Food Wise Co., a move that will allow the world’s largest foodmaker to focus on faster-growing categories in the region.

Yinlu brands had sales of 700 million francs ($768 million) last year, the Swiss company said in a statement Wednesday, without disclosing financial details of the transaction. The price was probably around 350 million francs, according to an estimate from Alain Oberhuber, an analyst at Stifel, who said that would be about 100 million francs below what he expected.

Nestle acquired Yinlu ...