Campbell agrees to divest Kelsen Group for $300m

US-based Campbell Soup Company has signed a definitive agreement to sell Kelsen Group to CTH for $300m.

Based in Denmark, Kelsen is engaged in the production of baked snacks under various brands, including Kjeldsens and Royal Dansk.

CTH is a Belgian holding company affiliated with the Ferrero Group.

The company had registered net sales of approximately $157m over the last year.

Campbell president and CEO Mark Clouse said: “The sale of Kelsen Group supports our strategy to focus on North America where we have iconic brands and strong market positions while reducing debt.

“Throughout the divestiture process, we have considered many options for our valuable international assets. Selling Kelsen separately from the rest of our international business generates the greatest possible value for Campbell.

“We are committed to the divestiture of the remainder of our international operations and will remain disciplined as we move forward.”

Campbell intends to use the proceeds from the divestiture to reduce debt.

As part of the transaction, CTH will acquire two production facilities in Nørre Snede and Ribe and expects to increase its presence in the fine biscuits sector.

Kelsen is part of Campbell, which also includes Arnott’s biscuits, Campbell’s simple meals businesses in Australia, Malaysia, Hong Kong and Japan, as well as manufacturing operations in Australia, Indonesia and Malaysia.

The company added that the process to sell the remainder of Campbell, including Arnott’s, is ongoing.

Subject to customary closing conditions and regulatory approvals, the deal is expected to close in the first quarter of 2020.

In February, Campbell signed a definitive agreement to sell its refrigerated soup facility in Everett, Washington, to an affiliate of the Joshua Green Corporation (JGC).