Swiss multinational Nestlé is reportedly close to an agreement that would sell its Davigel frozen foods unit to Brakes Group.
A source told Reuters the sale is expected to fetch between $211 million and $317 million. Nestlé officials acknowledged exploring a sale of the France-based brand last fall amid sliding sales.
Davigel sells frozen and chilled meals and desserts to restaurants, schools and hospitals primarily in Europe. Nestlé added the label when it acquired Buitoni in 1989.
The deal would be just the latest move by the world's largest food company to distance itself from underperforming segments, including its U.S. frozen ravioli business, the PowerBar and Musashi brands, weight-loss company Jenny Craig and a stake in fragrance and flavor maker Givaudan.
Brakes Group, a food service supplier in Europe, is owned by investment firm Bain Capital.