Sector News

Campbell Soup to sell Arnott’s for $2.2 billion

July 25, 2019
Food & Drink

KKR & Co., Inc., the New York-based private equity business, has emerged as the victorious bidder for remaining assets in the International division of Campbell Soup Co., according to a July 24 report in the Australian Financial Review.

In an auction, KKR beat out another private equity group, Pacific Equity Partners, Sydney, Australia, the Financial Review said.

Included in the International division are the Arnott’s biscuits business in Australia and Asia Pacific, the simple meals and shelf-stable beverages business in Australia and Asia Pacific, and the business in Latin America.

Arnott’s sells cookies and crackers under Arnott’s and TimTam brands. The company has plants in Australia, New Zealand and Singapore.

The Financial Review said KKR will pay $2.2 billion for the businesses it will acquire.

In 2018, Campbell Soup generated a total of $622 million in sales in Australia of the company’s $8,685 million total. Countries other than the United States and Australia generated $1,031 million in sales in 2018.

The totals include $157 million in sales of Kelsen Group products, acquired by Campbell Soup in 2013. Kelsen which operates plants in Denmark, South Africa, China, Honk Kong and the United States, manufactures cookies that are sold in 85 countries around the world. Earlier in July, it was announced that Kelsen would be acquired for $300 million by a holding company affiliated with the Ferrero Group.

By Josh Sosland

Source: Food Business News

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