Philip Morris sells food service unit
Philip Morris Cos. agreed yesterday to sell its Kraft Foodservice division, the second-largest food service business in the country, to investment firm Clayton, Dubilier & Rice Inc. for an estimated $700 million to $800 million.
The sale marks the biggest step so far in Philip Morris' campaign to shed its less profitable operations, particularly in food, and concentrate on core businesses, notably cigarettes and branded foods.
The parties didn't disclose the price or terms, but analysts estimated the figure at $700 million to $800 million.