Campbell inks deal to divest some European assets to CVC Capital Partners

Campbell Soup, a US-based food company, is set to divest part of its simple meals business in Europe 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 will take over 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 will also acquire four facilities in Puurs, Belgium; Le Pontet, France; Lubeck, Germany; and Karpalund, Sweden.

The deal does not include Campbell’s recently acquired Kelsen Group, which will continue to operate in Denmark and export its products to European countries and worldwide. In addition, Campbell will continue to export Pepperidge Farm products throughout Europe and Campbell products in the UK, Middle East and Africa.

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 Campbell businesses included in the proposed transaction reported net sales of about $530m in 2012.

Subject to the receipt of approval from the European competition law authorities, the transaction is expected to be completed in the fourth quarter of calendar 2013.

Allen & Overy is providing advisory services to Campbell, while Leopold Capital Partners, Barclays, Cleary Gottlieb Steen & Hamilton and Ernst & Young are advising CVC on the transaction.

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Image: CVC will take over Campbell’s national brands of soups, sauces and simple meals. Photo courtesy of Coolcaesar.