NORTHFIELD, Ill. – Kraft Foods Inc. (KFT) said Tuesday it would sell its hot cereal business, including the popular Cream of Wheat products, to a subsidiary of B&G Foods Inc. (BGF) for $200 million.
"Our decision to sell Cream of Wheat is part of a broader effort at Kraft to focus our portfolio," Rick Searer, president of Kraft's North America commercial segment, said in a statement.
Kraft, the world's second-largest food manufacturer, said the sale to Parsippany, N.J.-based B&G also includes the Cream of Rice label and manufacturing equipment.
Last year, the Cream of Wheat brand had a net revenue of $60 million.
The sale requires regulatory approval.
The Northfield-based company said it expects to record a pretax asset impairment charge of $69 million. The deal will be dilutive by .01 cent per share in 2007.
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