CAMDEN, N.J.–(BUSINESS WIRE)–Oct. 1, 2013–
Campbell Soup Company (NYSE:CPB) announced today that it has
signed a definitive agreement for the sale of its European simple meals
business to CVC Capital Partners (CVC), a leading global private equity
On Aug. 12, 2013, Campbell announced that it was in final and exclusive
negotiations for the potential sale of its European simple meals
business to CVC. Following the completion of information and
consultation procedures conducted with its European and local works
councils in accordance with applicable laws, Campbell has entered into a
binding share purchase agreement with CVC.
Under the terms of the agreement, CVC will acquire Campbell’s national
brands of soups, sauces and simple meals, including Liebig and Royco
in France, Erasco in Germany, Blå Band in Sweden and
Devos Lemmens and Royco in Belgium, for a purchase price of
400 million euros. The transaction also includes four plants in
Puurs, Belgium; Le Pontet, France; Lubeck, Germany; and Karpalund,
Sweden. Campbell intends to use the proceeds of the sale to pay down
debt and for other general corporate purposes.
The agreement does not include Campbell’s recently-acquired Kelsen
Group, which will continue its operations in Denmark and the export of
its products to countries in Europe and throughout the world. Campbell
will continue to export Pepperidge Farm products throughout
Europe and Campbell’s products in the United Kingdom and the
Middle East and Africa.
Denise Morrison, Campbell’s President and Chief Executive Officer, said,
“This sale reflects a strategic choice. We are in the process of
reshaping our portfolio to change Campbell’s future growth trajectory.
As part of this effort, we will be focusing our investments, resources
and talent on building the brands that we believe we can grow around the
world, strengthening our core and expanding our business in
faster-growing geographies and categories.”
In fiscal 2013, the Campbell businesses included in the proposed
transaction generated annual net sales of approximately $530 million.
The transaction is subject to clearance by the relevant European
competition law authorities. Campbell anticipates that the transaction
will be completed in the fourth quarter of calendar 2013.
Campbell is being advised by Allen & Overy LLP. CVC is being advised by
Leopold Capital Partners, Barclays, Cleary Gottlieb Steen & Hamilton LLP
and Ernst & Young.
About Campbell Soup Company
Campbell Soup Company is a manufacturer and marketer of high-quality
foods and simple meals, including soup and sauces, snacks and healthy
beverages. Founded in 1869, the company has a portfolio of
market-leading brands, including “Campbell’s,” “Pepperidge Farm,”
“Arnott’s,” “V8,” “Bolthouse Farms,” “Plum Organics” and “Kjeldsens.”
Through its corporate social responsibility program, the company strives
to make a positive impact in the workplace, in the marketplace and in
the communities in which it operates. Campbell is a member of the
Standard & Poor’s 500 and the Dow Jones Sustainability Indexes. For more
information, visit www.campbellsoupcompany.com
or follow company news on Twitter via @CampbellSoupCo.
This release contains “forward-looking statements.” Forward-looking
statements can be identified by words such as “anticipates,” “intends,”
“plans,” “believes,” “estimates,” “expects” and similar references to
future periods. Examples of forward-looking statements include, but are
not limited to, statements we make on the expected impact of the
transaction with CVC Capital Partners. Forward-looking statements are
based on our current expectations and assumptions regarding our
business, our industry and other future conditions. Forward-looking
statements are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. Our actual results may
differ materially from those contemplated by the forward-looking
statements. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include our
ability to realize the anticipated benefits from the potential
transaction with CVC Capital Partners and the other factors described in
the company’s most recent Form 10-K and subsequent SEC filings. We
undertake no obligation to update these statements to reflect new
information or future events.
Source: Campbell Soup Company
Campbell Soup Company
Carla Burigatto (Media)
Driscoll (Analysts / Investors)