France-based Axa Private Equity is evaluating plans to divest French food ingredients manufacturer Diana in a deal estimated to be worth EUR1bn.

The ingredients firm is likely to attract both strategic and private-equity interests, reports Bloomberg citing sources familiar with the matter.

Diana Group, established in 1990, specializes in producing and selling natural ingredients used in the pet food, human food & beverages and pharmaceutical industries.

The company manufactures products such as crispy apricot or strawberry pieces used in cereal bars, carrot liquid to color lollipops strawberry red, and wine extracts for marinades as well as ingredients for the pharmaceutical and cosmetics industries.

A final decision on the sale has been not made yet, the sources said.

Axa Private Equity had acquired Diana Ingredients from private equity firm Cognetas in 2007 in a deal worth €710m.

Diana Ingredients employs more than 1,500 people and operates 17 plants across the world in Europe, the US, Latin America and Australia. In 2011, the company posted revenues of €392m in 2011.