Kraft Foods to sell 'Back to Nature' food brand to PE firm Brynwood Partners

Kraft Foods Inc yesterday agreed to sell a majority stake in its 'Back to Nature' food brand to private equity firm Brynwood Partners, for an undisclosed amount.

The move comes ahead of the Northfield, Illinois-based company's plan of creating two independent public companies focusing on a snacks business and a North American grocery business, scheduled for October this year.

Kraft will retain a minority stake below 50 per cent in Back to Nature, which will be operated as a joint venture with Brynwood Partners, where Kraft will have board seats in the JV, while Brynwood will run the company.

Kraft Foods had in 2003 acquired the Back to Nature brand cereal and granola business from privately held manufacturer of natural products Organic Milling Inc, for an estimated $5 million.

Wisconsin-based Back to Nature, whose line of products includes crackers, cookies, granola, trail mixes and pasta dinners, had annual sales of between $50 million to $75 million, according to analysts.

With over $500 million of assets under management, Greenwich, Connecticut-based Brynwood Partners had acquired the cookie brand Stella D'oro Biscuit Co from Kraft Foods in 2006 and the Balance Bar Company in 2009.

Brynwood has over the years acquired several small brands from multinationals, including from Procter & Gamble, PepsiCo, Unilever, The Quaker Oats Company, Nestle and others.