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Campbell Completes Acquisition of Pacific Foods

CAMDEN, N.J.–(BUSINESS WIRE)–Dec. 12, 2017–
Campbell Soup Company (NYSE:CPB) today announced it has completed
the acquisition of Pacific Foods of Oregon (Pacific Foods) for $700
million in cash, subject to customary purchase price adjustments.

Pacific Foods is a leading producer of organic broth and soup1
and also produces shelf-stable plant-based beverages and other meals and
sides. Organic food is an $11 billion category in the U.S., which grew
at a compound annual growth rate of 15.7 percent over the past four
years.2 Pacific Foods offerings will join Campbell’s
portfolio of organic foods, which is in the top 10 in the industry.3

Denise Morrison, Campbell’s President and Chief Executive Officer, said,
“Pacific Foods is an excellent strategic fit with Campbell’s health and
well-being portfolio with its strong position in the faster-growing
natural and organic category. We are thrilled to add such a powerful and
respected organic brand to our company and intend to leverage our
expertise and resources to build on Pacific’s track record of sales
growth.”

Pacific Foods will be part of Campbell’s Americas Simple Meals and
Beverages division, which includes Campbell’s soup, simple meals and
shelf-stable beverage units in the U.S. and Canada. Led by Mark
Alexander, President, the Americas division includes many leading brands
such as Campbell’s, V8, Swanson, Prego, Pace and Plum
Organics
.

Alexander said, “Pacific is an authentic brand with a real food
philosophy that closely mirrors our own. We deeply respect what Pacific
has built, and our aim is to help Pacific to accelerate growth while
continuing its purpose-driven mission: to make nourishing foods with
simple, organic ingredients.”

Campbell named Joe Folds as Vice President and General Manager, Pacific
Foods. Folds has extensive, global experience leading businesses and
brands for Campbell since joining the company in 1997. He was most
recently Vice President, Strategy, Business Development and Global
Brands, Global Biscuits and Snacks.

Campbell plans to invest in the business to drive growth. Campbell
expects to expand distribution; boost marketing support for brand
building; and invest in R&D and the supply chain to deliver operations
and customer service excellence. Campbell will immediately begin to
integrate Pacific Food’s key functions.

Founded in 1987 in Tualatin, Ore., Pacific Foods has more than 500
employees and operates a certified organic plant where it produces its
namesake products. Campbell will continue to operate Pacific Foods out
of Tualatin.

Including the impact of purchase accounting, an increase in interest
expense associated with the acquisition and integration costs, Campbell
expects that the acquisition will be approximately $0.05 per share
dilutive to its fiscal 2018 earnings. Campbell expects that Pacific
Foods will contribute approximately $100 million in net sales in fiscal
2018.

Pacific Foods generated approximately $232 million in trailing
twelve-month net sales as of November 2017.

About Campbell Soup Company

Campbell (NYSE:CPB) is driven and inspired by our Purpose, “Real food
that matters for life’s moments.” We make a range of high-quality soups
and simple meals, beverages, snacks and packaged fresh foods. For
generations, people have trusted Campbell to provide authentic,
flavorful and readily available foods and beverages that connect them to
each other, to warm memories and to what’s important today. Led by our
iconic Campbell’s brand, our portfolio includes Pepperidge
Farm, Bolthouse Farms, Arnott’s, V8, Swanson, Pace, Prego, Plum, Royal
Dansk, Kjeldsens
, Garden Fresh Gourmet and Pacific Foods.
Founded in 1869, Campbell has a heritage of giving back and acting as a
good steward of the planet’s natural resources. The company 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.
To learn more about how we make our food and the choices behind the
ingredients we use, visit www.whatsinmyfood.com.

Forward-Looking Statements

This release contains “forward-looking statements” that reflect
Campbell’s current expectations about the impact of its future plans and
performance, including the acquisition of Pacific Foods, on Campbell’s
business or financial results. These forward-looking statements rely on
a number of assumptions and estimates that could be inaccurate and which
are subject to risks and uncertainties. The factors that could cause
Campbell’s actual results to vary materially from those anticipated or
expressed in any forward-looking statement include (1) Campbell may be
unable to achieve the anticipated benefits of the Pacific Foods
acquisition; (2) Campbell may not be able to integrate the Pacific Foods
business and operations in a timely and cost-efficient manner; (3)
revenues or other operating results following the Pacific Foods
acquisition may be lower than expected; (4) operating costs, customer
loss, and business disruption (including, without limitation,
difficulties in maintaining relationships with employees, customers, and
suppliers) may be greater than expected in connection with the closing
of the Pacific Foods acquisition; (5) Campbell may assume unexpected
risks and liabilities in the Pacific Foods acquisition; (6) integrating
Pacific Foods into Campbell’s business may distract Campbell’s
management from other important matters; and (7) the other factors
described in Campbell’s most recent Form 10-K and subsequent Securities
and Exchange Commission filings. Forward-looking statements speak only
as of the date made. Campbell disclaims any obligation or intent to
update the forward-looking statements in order to reflect events or
circumstances after the date of this release.

1 IRI Total US MULO latest 52 weeks ending 11/26/17
2
IRI Market Advantage: Total Edible Organics US MULO, latest 52 weeks
ending 11/26/17
3 IRI Total US MULO latest 52 weeks
ending 10/29/17

Source: Campbell Soup Company

Campbell Soup Company
INVESTOR CONTACT:
Ken
Gosnell, 856-342-6081
Ken_Gosnell@campbellsoup.com
or
MEDIA
CONTACT:
Thomas Hushen, 856-342-5227
Thomas_Hushen@campbellsoup.com