KKR to acquire certain Campbell International operations for $2.2bn

Investment firm KKR has signed a stock and asset purchase agreement with Campbell Soup Company to acquire certain international operations from Campbell for an enterprise value of nearly $2.2bn.

KKR will acquire a portfolio, which includes Arnott’s biscuits and Campbell’s simple meals and snacking brands in markets located in Australia, New Zealand, Indonesia, Malaysia, Singapore, Hong Kong and Japan.

It will also acquire manufacturing operations located in Australia, Indonesia and Malaysia.

KKR member David Lang said: “Campbell International represents a unique portfolio of iconic brands that are known and loved by consumers in Australia and across the world.

“We are privileged and excited to have the opportunity to invest in and grow Arnott’s as an independent business in Australia, in addition to further developing Campbell’s trusted brands across the broader Asian market.

“This is a milestone investment for KKR, and we look forward to working closely with the Campbell International management team to seek out new and exciting opportunities.”

Campbell International businesses comprise snacking and meal brands in the Asia Pacific (APAC) region with leading manufacturing capabilities and distribution channels.

The majority of revenue is generated by Arnott’s, the Australian biscuit brand. Its product range also includes Tim Tam and Shapes.

Campbell International’s brand portfolio includes soup, stock, juice and ready meals in Australia, New Zealand, Indonesia, Malaysia, Singapore, Hong Kong and Japan.

KKR entered a long-term licensing arrangement to obtain rights to use certain Campbell brands, such as Campbell’s, Swanson, V8, Prego, Chunky and Campbell’s Real Stock in Australia, New Zealand, Malaysia, as well as other markets including APAC, Europe, the Middle East and Africa.

Completion of the deal is expected to take place within the next six months, subject to customary closing conditions.