Nabisco Will Sell 5 European Businesses to Cut Buyout Debt

LONDON — RJR Nabisco Inc., moving forward with its plans to reduce debt from its record $25-billion buyout, said today it will shed five European food businesses with annual sales of more than $1 billion.

The businesses, three in Britain and one each in France and Italy, are being offered for sale separately or as a group.

Industry sources said companies that have shown interest in Nabisco’s European food subsidiaries include Unilever PLC, Allied-Lyons PLC, Nestle SA and Pepsico Inc., among others.

Nabisco said the proposed sale is in keeping with its previously stated intention to cut its overall debt by $5.5 billion through the sale of businesses.

The businesses include the British biscuits business of Nabisco and two British potato chip and snack-makers, Walker’s Crisps and Smiths Crisps; French cookie and specialty pastries maker Belin Group and Saiwa, an Italian biscuit and snack maker.

Sources also said Nabisco is expected to sell off U.S. food subsidiary Del Monte as part of the debt repayment plan. In addition, it is expected to sell the overlapping businesses of Beatrice Cos., a major food company already owned by Kohlberg Kravis Roberts & Co., the leveraged buyout group that executed the RJR takeover.