Campbell Soup Company (NYSE:CPB) announced it has completed the sale of its European Chips Business to Valeo Foods, a portfolio company of CapVest Partners LLP, for approximately £66 million (approximately $80 million based on current exchange rates). The Campbell European Chips Business includes UK-based Kettle Foods Limited and Netherlands-based Yellow Chips B.V. Campbell will use the proceeds from the divestiture to reduce debt.
Under the terms of the agreement, Campbell will retain the Kettle Brand business in the United States and all other geographies except for Europe and the Middle East. Campbell intends to grow the Kettle Brand as an important part of its Snacks portfolio.
The Campbell European Chips Business had net sales of approximately $130 million in fiscal 2019. The results of the European Chips Business through the time of sale will remain part of continuing operations within the Snacks segment.
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 FTSE4Good Index. For more information, visit www.campbellsoupcompany.com or follow company news on Twitter via @CampbellSoupCo.
About Valeo Foods Group
With operations in Ireland, the UK and Continental Europe and sales to approximately 90 countries, Valeo Foods is one of the fastest growing international ambient foods producers and distributors with annual sales of approximately €850 million, before the currently proposed acquisition of Kettle Foods. Valeo Foods owns a portfolio of popular consumer brands, many of them iconic household names in their markets, including Barratt, Rowse Honey, Fox's Glacier Mints and XXX Mints, Jacob's, Batchelors, Odlums, Shamrock, Kelkin, Robert Roberts, Pedro and Balconi. In total, Valeo Foods has 68 international brands.
The Group is a leader in sweet treats, health and wellness, baking and meal ingredients, out-of-home beverages and foodservice and has 21 locations across Ireland, the UK and Continental Europe.
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 the ability to complete and to realize the projected benefits of planned divestitures and other business portfolio changes; and Campbell's indebtedness and ability to pay such indebtedness. Campbell disclaims any obligation or intent to update the forward-looking statements to reflect events or circumstances after the date of this release.