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Campbell to Acquire Garden Fresh Gourmet to Extend Presence in Faster-Growing Packaged Fresh Category

CAMDEN, N.J.–(BUSINESS WIRE)–Jun. 9, 2015–
Campbell Soup Company (NYSE:CPB) today announced it has entered
into an agreement to acquire the assets and business of Garden Fresh
Gourmet for $231 million. Garden Fresh Gourmet is the No. 1
branded refrigerated salsa in the U.S. and also makes hummus, dips and
tortilla chips.1

Denise Morrison, Campbell’s President and Chief Executive Officer, said,
“The acquisition of Garden Fresh Gourmet is another milestone in
reshaping our portfolio toward faster-growing categories, including
packaged fresh and organic foods. Garden Fresh Gourmet’s on-trend
products will provide Campbell with another growth engine to help us
continue to shift our center of gravity.”

Garden Fresh Gourmet will become part of the Campbell Fresh division
(formerly called Packaged Fresh), leveraging the Bolthouse Farms
refrigerated fresh platform. Under Campbell’s new enterprise structure,
the division will focus on building the company’s scale and accelerating
growth in rapidly expanding packaged fresh categories across the retail
perimeter. Packaged fresh foods represent a $19+ billion category that
grew 4.9 percent in the past year, above the industry average.2
The division also includes the Bolthouse Farms portfolio of fresh
carrots, super-premium refrigerated beverages, salad dressings and kids
snacks, as well as the recently-launched 1915 brand of
ultra-premium cold-pressed organic juices. It also includes Campbell’s
retail refrigerated soups.

“Garden Fresh Gourmet will allow the Campbell Fresh division to expand
in the deli section of the grocery store perimeter and will complement
our strong presence in the produce section. It is a logical extension of
our fresh food and beverage platform that resonates with today’s
consumers. This is a critical next step in our journey to becoming the
leader in the fast-growing packaged fresh category,” said Jeff Dunn,
President–Campbell Fresh. “Garden Fresh Gourmet is an American success
story, whose leadership has built a vibrant brand with a loyal following
in faster-growing categories like refrigerated salsas and hummus. We
will leverage our packaged fresh production and distribution, sales and
brand-building capabilities to help Garden Fresh Gourmet become a
national brand.”

Garden Fresh Gourmet generated $100 million in net sales for the year
ended Dec. 31, 2014. With the addition of Garden Fresh Gourmet, the
Campbell Fresh division will account for more than $1 billion in annual
net sales.

Garden Fresh Gourmet was founded in 1998 when Jack and Annette Aronson
made their first batch of salsa in a five-gallon bucket in the back of
their restaurant and eventually started to package it for stores at the
request of a local upscale grocer.

Jack Aronson, who will stay on as an adviser to the business, said, “We
believe Campbell is the right company to take Garden Fresh Gourmet to
the next level and introduce our great products to more customers and
more consumers. I know Campbell is a fitting home for the Garden Fresh
Gourmet family.”

Garden Fresh Gourmet has approximately 500 employees with headquarters
based in Ferndale, Mich. The company also has operations in Grand
Rapids, Mich.; Inkster, Mich.; and Detroit, Mich. Garden Fresh Gourmet
will continue to operate out of Ferndale, and will be led by Todd
Putman, General Manager–Garden Fresh, within the Campbell Fresh division.

Over the past several years, Campbell has added a trio of growth engines
to its business by acquiring Bolthouse Farms in 2012, and organic
baby-food company Plum and biscuit company Kelsen in 2013. This
acquisition is the latest in a series of moves Campbell has made in
response to increased consumer interest in fresh foods and health and
well-being, first with Bolthouse Farms, followed by Plum and, shortly,
Garden Fresh Gourmet.

Campbell plans to fund the acquisition with commercial paper. Campbell
expects the transaction not to affect its previously announced fiscal
2015 guidance and to be slightly accretive beginning in fiscal 2016. The
closing of the transaction is subject to regulatory approvals and
customary closing conditions and is expected to occur in the fourth
quarter of fiscal 2015.

Morgan Lewis & Bockius LLP acted as Campbell’s legal counsel. Garden
Fresh Gourmet was advised by UHY LLP, and Maddin, Hauser, Roth & Heller,
P.C., acted as legal counsel.

About Campbell Soup Company

Campbell (NYSE:CPB) is driven and inspired by our Purpose, “Real food
that matters for life’s moments.” The company makes a range of products
from high-quality soups and simple meals to snacks and healthy
beverages. 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 its iconic Campbell’s brand, the company’s
portfolio includes Pepperidge Farm, Goldfish, Bolthouse
Farms
, V8, Swanson, Prego, Pace, Plum
Organics
, Arnott’s, Tim Tam, Royal Dansk and Kjeldsens.
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.

Forward-Looking Statements

This release contains “forward-looking statements” that reflect the
company’s current expectations about the impact of its future plans and
performance on the company’s business or financial results. These
forward-looking statements, including the statements made regarding the
expected impact of the Garden Fresh Gourmet acquisition, 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 the
company’s actual results to vary materially from those anticipated or
expressed in any forward-looking statement include (1) the company’s
ability to realize the anticipated benefits from the acquisition of
Garden Fresh Gourmet and to manage other organizational changes
effectively; (2) the company’s ability to realize projected cost savings
and benefits from its efficiency programs; (3) the impact of strong
competitive responses to the company’s efforts to leverage its brand
power in the market; (4) the impact of changes in consumer demand for
the company’s products; (5) the risks associated with trade and consumer
acceptance of the company’s initiatives, including its trade and
promotional programs; (6) the practices, including changes to inventory
practices, and increased significance of certain of the company’s key
trade customers; (7) the impact of fluctuations in the supply or costs
of energy and raw and packaging materials; (8) the uncertainties of
litigation; (9) the impact of changes in currency exchange rates, tax
rates, interest rates, debt and equity markets, inflation rates,
economic conditions and other external factors; (10) the impact of
unforeseen business disruptions in one or more of the company’s markets
due to political instability, civil disobedience, armed hostilities,
natural disasters or other calamities; and (11) other factors described
in the company’s most recent Form 10-K and subsequent Securities and
Exchange Commission filings. The company 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 InfoScan – Total US MULO; 52 weeks ending 1/25/15
2
IRI Multi-outlet – Total US; 52 weeks ending 5/10/15

Source: Campbell Soup Company

Campbell Soup Company
INVESTOR CONTACT:
Jennifer
Driscoll, 856-342-6081
jennifer_driscoll@campbellsoup.com
or
MEDIA
CONTACT:
Carla Burigatto, 856-342-3737
carla_burigatto@campbellsoup.com