RETAILING

Kraft to Sell Marshmallow, Caramel Unit: Northfield, Ill.-based Kraft Foods Inc., a unit of Philip Morris Cos., said it agreed to sell its North American marshmallow and caramel business, which generated about $150 million in revenue in 1994, to investment groups Texas Pacific Group and InterWest Partners. The sale, whose terms were not disclosed, includes both the unit’s retail products and ingredients supplied to other food processors. Kraft will continue to make marshmallow and caramel products for the investors at other facilities during an extended transition period. Kraft said its Buena Park plant, which employs 355 people, will close once marshmallow production ends and the manufacture of other products is transferred to other Kraft plants.