Nestlé has agreed to sell a majority stake in Herta, its packaged meat business, to family-run Spanish company Casa Tarradellas to create a joint venture.
Nestlé in February put Herta charcuterie, the cold cuts and meat-based products unit, under strategic review as it no longer fit the company's strategic focus on healthy nutrition and plant-based offerings.
The Swiss company would hold a 40% stake in the joint venture that would include Herta charcuterie, available in six European countries, and Herta dough business in France and Belgium.
Herta charcuterie and dough units together reported sales of €667 million last year and have been valued at €690 million, Nestlé said.
Herta vegetarian business would be retained and developed by Nestlé, it said.
"The Herta business has delivered strong performance over the past years and is well-positioned for future growth," commented Marco Settembri, executive vice president, chief executive officer Zone Europe, Middle East and North Africa, Nestlé.
"We are happy to have Casa Tarradellas as our partner, a family-run business that is a market leader in Spain for pizza, fresh dough and charcuterie. Both companies have a true passion for quality and innovation and are proud to be in a joint venture to provide our consumers with great ingredients for their daily meals."
Chief executive Mark Schneider has accelerated a portfolio review at the company, doing around 50 transactions and reviews since he took over in 2017.
Earlier this month, Nestlé agreed to sell for $4 billion its U.S. ice-cream business, which includes Haagen-Dazs, to Froneri - its joint venture with private equity firm PAI partners.
The Herta deal is expected to close in the first half of 2020.