Nestlé (Swiss: NESN) said that it is considering "strategic options" that could include the sale of its U.S. confectionary business, which includes such brands as Butterfinger, Baby Ruth, Raisinets and the underappreciated 100 Grand. Not included are Nestlé Toll House baking products nor KitKat, the latter of which is made by Hershey in the U.S. The unit has annual sales of more than $900 million, and could be worth around $3 billion in a sale.
- Why it's the BFD: This divestiture attempt is reflective both of healthier American snacking habits, and also of Nestlé's own efforts in that direction. In fact, the company's new(ish) CEO is a former healthcare exec.
- What's not included: Nestle Toll House baking nor KitKat, the latter of which is made by Hershey in the U.S.
- Big question: Is it still a Nestlé Crunch bar if it's no longer made by Nestlé?
- Bottom line: "The projected compound annual growth rate for the next five years for both chocolate and sugar confectionery in North America is around 2 percent, according to Euromonitor International. And Nestle's business specifically experienced a decline in the first three months of the year and has lost market share. It only makes sense that it's ready to move on from this market, where margins trail its global average." ― Gillian Tan
• Tintri, a Mountain View, Calif.-based provider of VM-aware storage for virtualization and cloud environments, has set its IPO terms to 8.7 million shares being offered at between $10.50 and $12.50 per share. It would have an initial market cap of around $357 million, were it to price in the middle of its ranger. The company plans to trade on the Nasdaq under ticker symbol TNTR, with Morgan Stanley listed as left lead underwriter. Tintri reports a $106 million net loss on $125 million in revenue for fiscal 2016 (ending 1/31/17), compared to a $101 million net loss on $86 million in revenue for fiscal 2015. Shareholders include NEA (22.7% pre-IPO stake), Silver Lake Kraftwerk (20.4%), Insight Venture Partners (20.2%), Lightspeed Ventures (14.5%) and Menlo Ventures. www.tintri.com
• DuPont (NYSE: DD) and Dow Chemical (NYSE: DOW) have received U.S. antirust approval for their $130 billion all-stock merger, with certain divestiture conditions. http://reut.rs/2s8n98T
• ILG (Nasdaq: ILG), a Miami, Fla.-based timeshare properties company with a market cap of around $3.5 billion, is holding preliminary talks about selling the company to a rival, according to Reuters. The move follows activist pressure from FrontFour Capital Group, with Moelis & Co. managing the process. http://reut.rs/2rxGIZH
• Hardware Club, a networked community of hardware startups, has raised $28 million to back companies that come out of its platform. http://bit.ly/2stDkhJ