Snacking expansion: Mondelez in advanced talks for Campbell's international business say reports
01 Apr 2019 --- Mondelez International Inc. is reportedly in advanced talks to buy the international brands of US food company Campbell Soup Co. Mondelez is negotiating final terms of purchase of the business, which includes Australian cookie brand Arnott’s and Danish baked snacks maker Kelsen Group, according to a Bloomberg report last Thursday, citing people familiar with the matter.
According to the report, Campbell’s and Mondelez had been discussing a sales price of around US$2.5 billion for the assets. However, no final accord had been reached and talks could have been torn apart, as other potential buyers had already been in query.
Mondelez, Nutella maker Ferrero SpA and a consortium comprising private equity firms KKR & Co and Bain Capital LP were among the bidders for Campbell’s international business, according to a Reuters report earlier this month.
The company responded with a plan to sell its international and fresh food businesses after a three-month review, laying out plans to re-evaluate its portfolio of brands, including the two reportedly being considered by Mondelez. Loeb and Campbell Soup made peace last November after agreeing to give Loeb's Third Point LLC input on director elections.
Campbell’s international unit, along with its “fresh” business, was put up for sale in August after the company was pressured by investors to take steps to boost its profitability and stock performance.
The company last month said it expects to name buyers for the business by the end of its fiscal year in July.
Mondelez and Campbell have declined to comment on the Reuters report.
Last August, it emerged that Campbell Soup Company was to sell its international businesses and fresh refrigerated-foods unit, following a several month-long strategic review and pressure from hedge fund investors to sell the whole company. At the time, FoodIngredientsFirst reported that speculation was mounting over whether the long-established US snacks and soup company will be put up for sale amid a drawn-out period of falling sales.
Citing “years of abysmal oversight” and the bumbling of its CEO succession planning, billionaire investor Daniel Loeb last August called for Campbell Soup to sell itself to another company, saying at the time that “the only justifiable outcome of the strategic review is for [Campbell] to be sold to a strategic buyer.” At the time, Campbell also said that as part of the review, it is raising its overall cost savings target to US$945 million by fiscal 2022.
Last week, Campbell Soup Company announced that Les C. Vinney has chosen to retire as Chairman of the Board and as a director. The Board of Directors has elected Keith R. McLoughlin to succeed Vinney as Chairman. The Board also announced the appointment of J.P. Bilbrey, former Chief Executive Officer (CEO) of The Hershey Company, to the Board, as well as the retirement of Sara Mathew.
It also recently emerged that Mondelēz International had entered into a partnership with The Hatchery Chicago, a non-profit food business incubator, as it ramps up its innovation efforts to lead the future of snacking. The partnership is one of several investments the company is making as part of SnackFutures, the company’s innovation and venture hub aimed at unlocking snacking growth opportunities around the world.
Through the new partnership, Mondelēz International and the SnackFutures team will be able to connect with the local food and beverage start-up community and work together to accelerate and scale innovation. Mondelēz International will work with The Hatchery Chicago to offer educational opportunities and mentorship to entrepreneurs active in Chicago’s thriving food and drink scene.
