07/12/2019 | Press release | Distributed by Public on 07/12/2019 02:17
CAMDEN, N.J.--(BUSINESS WIRE)--Jul. 12, 2019-- Campbell Soup Company (NYSE: CPB) announced today that it has signed a definitive agreement for the sale of Kelsen Group to a Ferrero affiliated company for $300 million, subject to customary purchase price adjustments. Proceeds from the divestiture will allow Campbell to reduce debt.
Based in Nørre Snede, Denmark, Kelsen is a producer of quality baked snacks whose primary brands include Kjeldsens and Royal Dansk. Kelsen had net sales of approximately $157 million in the latest 12 months. The company has approximately 400 employees. Kelsen is part of Campbell International, which also includes Arnott's biscuits, Campbell's simple meals businesses in Australia, Malaysia, Hong Kong and Japan, and manufacturing operations in Australia, Indonesia and Malaysia. The process to divest the remainder of Campbell International, including Arnott's, is proceeding.
Mark Clouse, Campbell's President and CEO, said, 'The sale of Kelsen Group supports our strategy to focus on North America where we have iconic brands and strong market positions, while reducing debt. Throughout the divestiture process, we have considered many options for our valuable international assets. Selling Kelsen separately from the rest of our international business generates the greatest possible value for Campbell. We are committed to the divestiture of the remainder of our international operations and will remain disciplined as we move forward.'
Closing is expected in the first quarter of fiscal 2020.
Campbell was advised by Centerview Partners, Goldman Sachs and Weil, Gotshal & Manges LLP.
About Campbell Soup Company
Campbell (NYSE:CPB) is driven and inspired by our Purpose, 'Real food that matters for life's moments.' For generations, people have trusted Campbell to provide authentic, flavorful and affordable snacks, soups and simple meals, and beverages. 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 and Poor's 500 and the Dow Jones Sustainability Indexes. For more information, visit www.campbellsoupcompany.com or follow company news on Twitter via @CampbellSoupCo.
About Ferrero Affiliated Company
CTH is a Belgian holding company affiliated to the Ferrero Group.
This release contains 'forward-looking statements' that reflect Campbell's current expectations about the impact of its future plans and performance 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 are described in Campbell's most recent Form 10-K and subsequent Securities and Exchange Commission filings, and include Campbell's ability to execute on and realize the expected benefits from the actions it intends to take as a result of its recent strategy and portfolio review; the ability to differentiate its products and protect its category leading positions, especially in soup; the ability to complete and to realize the projected benefits of planned divestitures and other business portfolio changes; Campbell's indebtedness and ability to pay such indebtedness; and changes in currency exchange rates, tax rates, interest rates, debt and equity markets, inflation rates, economic conditions, law, regulation and other external factors. Campbell disclaims any obligation or intent to update the forward-looking statements to reflect events or circumstances after the date of this release.
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Source: Campbell Soup Company