UL has reportedly retained Morgan Stanley (MS) to advise it on the sale of Ragu, which is expected to bring UL between $1.5 billion and $2 billion. UL has reached out to a number of possible suitors for Ragu, including Kraft Foods (KRFT), Berkshire Hathaway’s (BRK.A, BRK.B) HJ Heinz and Pinnacle Foods (PF).
Under CEO Paul Polman, UL has been moving to reduce its number of food brands. Last year, UL sold its Wish-Bone salad dressing business to Pinnacle Foods for $580 million.
UL shares fell about 2% in Monday mid-day trading, in a market moving sharply downward due to rising international tensions over the crisis in Ukraine. UL stock has risen less than 2% over the past 12 months.