In a statement published yesterday, the Swiss dairy giant announced it has agreed to sell its Alete and Milasan baby food brands to a consortium comprised of Stuttgart-based private equity firm BWK and private investor Horst Jostock for an undisclosed fee.
Scheduled to close on January 2015, the transaction will allow Nestlé to focus its infant nutrition efforts in Germany and Austria on its Beba infant formula brand.
The Beba range includes regular and non-hypoallergenic infant formula in varying formats and infant cereal.
"As part of its continuous portfolio management, Nestlé has decided to focus its infant nutrition business on the Beba brand in Germany and Austria," said a statement posted on the Nestlé website.
Under the deal, the consortium will also take control of Nestlé's baby food plant in Weiding, Germany.
It will also inherit established export volume, co-packing abilities, IT support, and a share of Nestlé's sales force as part of the deal.
A statement posted on the Nestlé Germany website said BWK and Jostock had been deliberately selected to "ensure the future of the brands" and the "continuation of employment" at Weiding.
Commenting, Jostock and BWK said money will be spent to ensure the success of their newly acquired brands.
"We are delighted to take on two very well-known brands, Alete and Milasan," said Jostock.
"We will invest in both brands and open up new segments and markets."
Jochen Wolf, managing director, BWK, added: "We are convinced of the potential of the brands and think that our long-term investment approach fits well with Alete and Milasan."