CAMDEN, N.J.–(BUSINESS WIRE)–Aug. 15, 2006–Campbell Soup
Company (NYSE:CPB) today announced it has completed the sale of its UK
and Irish businesses to Premier Foods plc following the approval of
Premier’s shareholders. Campbell announced the signing of the
agreement on July 12, 2006.
Campbell sold the businesses, which include products manufactured
under the “Homepride”, “OXO”, “Batchelors”, “Erin” and “Fray Bentos”
brands and four manufacturing sites, for approximately $870 million at
the current exchange rate. Detailed financial information outlining
the historical pro forma impact of the transaction and the anticipated
use of proceeds will be made available shortly through a public
Campbell also announced that its Board of Directors has authorized
using approximately $620 million of the net proceeds of the sale to
purchase company stock. These purchases are expected to be
substantially completed in fiscal 2007. This share repurchase
authority is in addition to the three-year $600 million share
repurchase plan announced in November 2005 and the company’s ongoing
practice of buying back shares sufficient to offset shares issued
under incentive compensation plans.
Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “The sale of these businesses will better enable
Campbell to focus on building our businesses within the simple meals
and baked snacks categories in markets with the greatest potential for
growth. Our decision to utilize a majority of the proceeds to purchase
shares reflects the confidence we have in our long-term growth
prospects and is consistent with our commitment to deliver strong
Campbell retained the Goldman Sachs Group to advise on the
About Campbell Soup Company
Campbell Soup Company is a global manufacturer and marketer of
high quality simple meals, soups, baked snacks, vegetable-based
beverages, and premium chocolate products. Founded in 1869, the
company has a portfolio of more than 20 market-leading brands,
including “Campbell’s,” “Pepperidge Farm,” “Arnott’s,” “V8,” and
“Godiva.” For more information on the company, visit Campbell’s
website at www.campbellsoupcompany.com.
CONTACT: Campbell Soup Company
Jerry S. Buckley, 856-287-5814 or 856-342-6007
Leonard F. Griehs, 856-342-6428
SOURCE: Campbell Soup Company
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