Campbell to sell Kelsen Group to Ferrero affiliate for US$300m

12 Jul 2019 --- The Campbell Soup Company has signed a definitive agreement for the sale of Kelsen Group to Ferrero Group affiliated company CTH, a Belgian holding company, for US$300 million – subject to customary purchase price adjustments. Proceeds from the divestiture will allow Campbell to reduce debt. The move closely follows Campbell’s sale of Bolthouse Farms to an affiliate of Butterfly Equity for US$510 million, as well as the sale of Garden Fresh Gourmet to an affiliate of Fountain of Health USA. The deal is expected to be finalized by the first quarter of 2020.

Ferrero, however, is on a growth spurt and is firmly establishing its North American footprint, most recently with the acquisition of several businesses from the Kellogg Company for US$1,3 billion. With these acquisitions, Ferrero is now the third-largest confectionery company in North America and continues to increase its product offering in this key strategic market.

Based in Nørre Snede, Denmark, Kelsen is a producer of quality baked snacks whose primary brands include Kjeldsens and Royal Dansk. Kelsen had net sales of approximately US$157 million in the latest 12 months. Kelsen has been, until now, part of Campbell International, which also includes Arnott’s Biscuits, Campbell’s simple meals businesses in Australia, Malaysia, Hong Kong and Japan and manufacturing operations in Australia, Indonesia and Malaysia. The process to divest the remainder of Campbell International, including Arnott’s, is proceeding.

“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,” says Mark Clouse, Campbell’s President and CEO. 

Campbell was advised by Centerview Partners, Goldman Sachs and Weil, Gotshal & Manges LLP.

Edited by Kristiana Lalou