Campbell Soup in talks to sell European business to CVC Capital Partners

US-based Campbell Soup has announced that it is in final and exclusive negotiations for the potential sale of its business in Europe to UK-based private equity firm CVC Capital Partners for an undisclosed amount.

Campbell Europe, headquartered in Puurs, Belgium, employs around 1,300 people and is a leading consumer food business with a strong presence in Belgium, France, Germany, Sweden and Finland.

The proposed sale includes 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.

The transaction also includes the sale of four facilities in Puurs, Belgium; Le Pontet, France; Lubeck, Germany; and Karpalund, Sweden.

The sale does not include the export of Pepperidge Farm products throughout Europe or Campbell’s products in the UK, Middle East or Africa. It also excludes the Kelsen Group, which will continue to operate in Denmark and export its products to European countries and worldwide.

The Campbell businesses included in the transaction reported net sales of approximately $530m in 2012.

CVC Capital Partners senior managing director Steven Buyse said that CVC is delighted to have entered into exclusive final negotiations for the Campbell Europe acquisition.

"Campbell Europe is a strong business with iconic brands, experienced management and dedicated employees. CVC is committed to successfully growing the business further and to supporting its leading brand portfolio," Buyse added.

Campbell stated that it will hold an information and consultation process with its European and local works councils with respect to the proposed sale.

The company has the option to cause the parties to execute a binding share purchase agreement following the conclusion of the consultation process.

The proposed transaction, which is subject to the receipt of approval from the European competition law authorities, is expected to be completed in the first quarter of fiscal 2014.

Campbell is being advised by Allen & Overy, while CVC is being advised by Leopold Capital Partners, Barclays, Cleary Gottlieb Steen & Hamilton and Ernst & Young on the proposed deal.

Established in 1869, Campbell Soup is a manufacturer and marketer of simple meals including soup and sauces, snacks and healthy beverages under the Campbell’s, Pepperidge Farm, Arnott’s, V8, Bolthouse Farms, Plum Organics and Kjeldsens brands.

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Image: The proposed sale includes Campbell’s national brands of soups, sauces and simple meals. Photo courtesy of Coolcaesar.