Campbell Soup closes sale of European assets to CVC Capital Partners

Campbell Soup, a US-based food company, has closed the sale of its European simple meals business to UK-based private equity firm CVC Capital Partners in a deal valued at €400m.

Headquartered in Puurs, Belgium, Campbell Europe is a consumer food business with a presence in Belgium, France, Germany, Sweden and Finland; it has around 1,300 staff.

As part of the transaction, CVC Capital has acquired 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.

It also gained control of four facilities in Puurs, Belgium; Le Pontet, France; Lubeck, Germany; and Karpalund, Sweden.

The deal excludes the export of Pepperidge Farm products throughout Europe or Campbell’s products in the UK, Middle East or Africa.

In addition, it does not include Kelsen Group, which will continue to operate in Denmark and export its products to European countries and worldwide.

Earlier this month, Campbell inked a definitive agreement to sell the simple meals business to CVC.

Campbell president and CEO Denise Morrison said, "This sale reflects a strategic choice. 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," Morrison added.

The company intends to use the proceeds of the sale to pay down debt and for other general corporate purposes.

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Image: Campbell plans to use the proceeds of the sale to pay down debt and for other general corporate purposes. Photo courtesy of Coolcaesar.