Campbell to divest Campbell Fresh and Campbell International businesses

US-based canned soup producer Campbell Soup (Campbell) is planning to divest its non-core businesses, Campbell Fresh and Campbell International.

The Campbell International includes snack brands Arnott’s and biscuit brands Kelsen Group, while Campbell Fresh includes Bolthouse Farms, Garden Fresh Gourmet, and the refrigerated soup business.

Campbell has engaged Goldman Sachs and Centerview Partners to commence the divestment process of its Campbell International and Campbell Fresh businesses.

With the proceeds from this divestiture, Campbell intends to reduce its debts and focus on its two distinct businesses, Campbell Snacks and Campbell Meals and Beverages in the North American market.

Campbell interim president and CEO Keith McLoughlin said: “Campbell’s Board of Directors considered a full slate of strategic options, including optimising the portfolio, divesting businesses, splitting the company, and pursuing a sale.

“The Board concluded that, at this time, the best path forward to drive shareholder value is to focus the company on two core businesses in the North American market with a proven consumer-packaged goods business model. Importantly, the Board remains open and committed to evaluating all strategic options to enhance value in the future.”

The company also intends to increase its cost savings target to $945m by the fiscal year 2022.

McLoughlin added: “Our plan will build upon our existing strengths. Our new leadership team will concentrate on significantly improving operational discipline through a rigorous management model that aligns the enterprise from strategy through execution.”