Campbell Soup Co. has signed a deal to sell some of its European assets to private-equity firm CVC Capital Partners.
In August Campbell said it was in “exclusive final negotiations” with CVC following a “firm offer” for “certain European activities”. The company said today (2 October) it has now entered into a binding share purchase agreement with CVC.
Under the terms of the deal, CVC will acquire Campbell’s national brands of soups, sauces and simple meals, including Liebig and Royco in France, Erasco in Germany, Blå Band in Sweden and Devos Lemmens and Royco in Belgium, for EUR400m (US$543.5m).
The transaction also includes four plants in Puurs, Belgium; Le Pontet, France; Lubeck, Germany; and Karpalund, Sweden.
Campbell said the export of Pepperidge Farm products throughout Europe or its products in the UK, the Middle East and Africa are not included. Kelsen Group, the Denmark-based snack firm Campbell acquired earlier this year, is also not part of the deal.
“This sale reflects a strategic choice,” said CEO Denise Morrison. “We are in the process of reshaping our portfolio to change Campbell’s future growth trajectory. As part of this effort, we will be focusing our investments, resources and talent on building the brands that we believe we can grow around the world, strengthening our core and expanding our business in faster-growing geographies and categories.”
