Campbell’s European Potato Chips, Kettle Sold to Valeo Foods Group
Valeo Foods Group, a portfolio company of CapVest Partners LLP, has signed a deal to purchase the European chips business of Campbell Soup. The purchase of approximately $80 million includes UK based Kettle Foods and Netherlands-based Yellow Chips B.V.
The advice for the deal was given to Campbell by Barclays and Weil, Gotshal & Manges LLP. It is estimated that the deal will reach closure by the first quarter of fiscal-year 2020.
The European chips business is comparatively a new profit maker for Campbell, taken over last year with the South Jersey firm’s overtaking Synder’s Lance.
In the earnings report that came out on Friday, the previous quarter of the company showed a three percent growth in the snack sales. This means that despite selling off a section of the company, Campbell has great things coming in line. According to the firm, the “continued momentum” should be first credited to the increased sales of Kettle Brand potato chips and only later can we count the other products in.
It has been reported that Campbell is selling off its international businesses only to strengthen its focus on the main businesses of North America, including soups, snacks and sauces. The sales from the proceeds are being used to pay down the $7.50 billion worth debts recorded last year.
According to Campbell, among the other conditions that prevail, the sale is due “to the regulatory approval and consultation with employee representative bodies.”
In 2010, private-equity firm CapVest created ValeoFoods Group as a means to acquire two Ireland-based food businesses – Batchelors and Origin Foods. Another year later, one more Irish food manufacturer to that platform, Jacob Fruitfield Food Group.
The previous decade was loaded with dealings, including the 2014 acquisition of UK honey supplier Rowse and the purchase of Balconi Industria Dolciaria in 2015. In the year 2017, Valeo Foods Group grabbed a deal with Tangerine Confectionery, another UK candy supplier. As per Valeo’s website, its annual sales are approximately around EUR870m (US$975.1m).
The company’s efforts have been appreciated by the investors by making Campbell’s shares reach 36 percent so far this year. The recent soup sales of the US company have come across as good news.
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