US-based food company Kraft Foods is seeking to sell its Breakstone's sour cream and cottage cheese products unit, which is estimated to be worth $400m.
Mexico-based Dairy firm Grupo Lala is planning to acquire Breakstone's business, reported Bloomberg.com citing persons with knowledge of the matter.
Kraft Foods may also sell a few smaller brands in the future, as it focuses on its power brands such as Kraft Macaroni & Cheese, Velveeta, Jell-O and Oscar Mayer.
The company initiated its plans to seek a buyer for the Breakstone's business after it formed two independent public companies through a tax-free spinoff of its North American grocery business on 1 October 2012.
The North American grocery business, known as Kraft Foods, includes US beverages, cheese, convenient meals and grocery segments and the non-snack categories in Canada and food service, and it owns brands such as Velveeta, Miracle Whip, Maxwell House and Oscar Mayer.
The global snacks business, known as Mondelez International, includes Kraft Foods Europe, developing markets units as well as the North American snacks and confectionery businesses, and it own brands such as Oreo, Cadbury, Milka, Trident and Nabisco.
Kraft Foods is estimated to have annual revenue of approximately $16bn, and Mondelez International is likely to have revenue of approximately $32bn.
Meanwhile, it has been reported that Grupo Lala is also seeking to acquire Morningstar Foods, which produces milk products for retailers and restaurants, from US food and beverage company Dean Foods, in a deal which is likely to be valued at more than $1bn.
