NORTHFIELD, Ill. (AP) — Kraft Foods Inc. said Tuesday it has agreed to sell its Fruit2O water and Veryfine juice brands to Sunny Delight Beverages Co.
The terms of the deal were not disclosed.
Kraft said the brands no longer fit in with the company's long-term growth strategies. The two brands reported total revenue of about $135 million in 2006.
Kraft said the sale also includes manufacturing equipment and a manufacturing facility in Littleton, Mass.
The company added that in connection with the sale, about 200 employees will move to Sunny Delight Beverages.
The deal is expected to be completed in the fourth quarter.
Kraft said it will record a one-time pretax asset impairment charge of about $125 million in the third quarter which will amount to an after-tax charge of about $55 million, or 3 cents per share. Analysts surveyed by Thomson Financial forecast, on average, third-quarter earnings per share of 42 cents.
