Nutrimental may be for sale

The food manufacturer paranaense Nutrimental hired banco Itaú BBA to a total or partial sale, according to two sources. Founded by the family Rocha Loures in Paraná, the company manufactures bars of cereals, porridge, breakfast cereals and fruit punch and owns the brands Nutribom and Nutry, Nutrilon, Nutrinho. The company has begun conversations with potential stakeholders, including PepsiCo, General Mills, Mondelez, among other Brazilian and Asian companies. Questioned about the sale process, the Nutrimental says keeps the normal course of its business and activities and doesn't talk about market rumors. The company has revenues of $300 million and R planning a sale around £ $1 billion as Executive with knowledge of the matter. The initial surveys, however, indicate a value for business below that, between 1 and 1.5 time billing. The company's financial performance has been affected by greater competition and the need for new investments in innovation. In recent years, the company closed in the red. According to the balance sheet reported in 2017 (most recent data), the Nutrimental R $3,630,000 in injury had 2016. In addition to difficulty monetizing business, revenue has stagnated in recent years. In addition to performing, two reasons directly affect the price and pace of negotiations. The first is the risk of reputation and contingency of the company. The former aide of President Michel Temer, Rodrigo da Rocha Loures, the "man in the suitcase", has been Director of the Nutrimental, founded by his father, Rodrigo Costa da Rocha Loures. The father remains in the Presidency of the Council. The company's Office in São Paulo was the target of search and seizure by the Federal Police in June last year, when the PF found documents about a family in the Virgin Islands offshore-which, according to the partners, was inactive since creation. Nutrimental has no direct involvement and Mr away Rocha Loures is not a shareholder. Still, a possible buyer could make a contract of protection from possible future contingencies, even model that has made in sales of Odebrecht, as shown a source. The other point is the clientele. One of the segments of the Nutrimental is school lunch-serving municipal public power, State and federal law, which does not please to multinationals. They are the main competitors. Among the strongest in the categories of Nutrimental are Nestle, owner of brands such as Neston and milk mix flour breakfast cereals Mucilon children's and Pepsico, owner of the Quaker brand oats and bars. A national company, the Trio competes only in the category of cereal bars. This segment is part of a healthy food and beverage market that moves some R $90 million in Brazil, according to consulting firm Euromonitor. Multinational companies have increased investment in this type of food, including the acquisition of local brands. Last year, Unilever bought the brazilian mother earth, in a dispute with Pepsico and Coca-Cola. Mondelez, PepsiCo and General Mills say they don't comment on market speculation. Nestlé and Unilever have not yet expressed interest.