US canned soups producer Campbell Soup Company has agreed to sell its Danish baked snacks producer Kelsen Group to a Ferrero affiliated company for $300 million, as per the latest food acquisition news.
Campbell Soup intends to use the proceeds from the sale of the Danish baked snacks producer to cut down its debt.
Headquartered in Nørre Snede, Kelsen, which was founded in 1933 as a small family bakery, is a manufacturer of baked snacks like Kjeldsens and Royal Dansk. In the latest 12 months, Kelsen reported net sales of nearly $157 million.
The Danish food company, which has around 400 employees, bakes close to 25,000 tons of cookies every year. It is part of Campbell International, which also includes Campbell’s simple meals businesses in Australia, Malaysia, Japan and Hong Kong, Arnott’s biscuits, and manufacturing operations in Australia, Malaysia and Indonesia.
The US canned soups producer said that the process to sell the remainder of Campbell International, including Arnott’s, is going on.
Commenting on the sale of Kelsen, Mark Clouse – Campbell Soup President and CEO, said: “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.”
The closing of the sale of the Danish baked snacks producer is expected to occur in Q1 2020.
Earlier this year, Campbell Soup signed a deal to divest Bolthouse Farms, a producer of organic beverages, dressings, and carrots, to an affiliate of Butterfly Equity for $510 million. Upon completion of the sale of Bolthouse Farms, Campbell Soup will have offloaded its entire Campbell Fresh division.
For more food acquisition news like Campbell Soup sale of Kelsen Group, keep following Business News Today.