Valeo Foods to acquire Campbell’s European Chips business

CapVest Partners’ portfolio company Valeo Foods has signed an agreement to acquire Campbell Soup’s European Chips business for a consideration of nearly £66m ($80m).

Valeo Foods will acquire the business, which includes UK-based Kettle Foods and Netherlands-based Yellow Chips.

Kettle Foods produces hand-cooked crisps, popcorn, rice snacks and vegetable-based chips. It offers its products under brands such as KETTLE Chips and Metcalfe’s skinny popcorn.

Campbell will also sell Yellow Chips, which produces vegetable and organic potato chips that are offered under private label snacks, as well as its own brands, including Go Pure.

Under the terms of the deal, Campbell will retain the Kettle Brand business in the US and other global markets, excluding Europe and the Middle East.

With this move, the company intends to further enhance the footprint of the Kettle Brand as an important part of its snacks portfolio, which also includes Pretzel Crisps, Goldfish, Lance, Late July, Cape Cod, Emerald, Milano, Pepperidge Farm, Snack Factory and Snyder’s of Hanover brands.

The sale proceeds will be used by Campbell to reduce debt.

Completion of the deal is subject to customary closing conditions, including relevant regulatory approvals, as well as consultations with employee representative bodies and is expected to take place in the first quarter of fiscal 2020.

Last month, Investment firm KKR 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 agreed to 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.