US-based Campbell Soup has announced that it is in final and exclusive negotiations for the potential divestment of its business in Europe to CVC Capital Partners (CVC), a leading UK-based private equity firm.
Campbell Europe, headquartered in Puurs, Belgium, employs around 1,300 people. It is a leading consumer food business primarily active in Belgium, France, Germany, Sweden and Finland.
The proposal includes Campbell's national brands of soups, sauces and simple meals, including Liebig and Royco in France, Erasco in Germany, Bl Band in Sweden and Devos Lemmens and Royco in Belgium. The proposal also includes the sale of four plants in Puurs, Belgium; Le Pontet, France; Lubeck, Germany; and Karpalund, Sweden.
The deal does not include the export of Pepperidge Farm products throughout Europe or Campbell's products in the UK or the Middle East or Africa. It also does not include Kelsen Group, which will continue its operations in Denmark and the export of its products to countries in Europe and throughout the world.
The Campbell businesses included in the proposed transaction generated annual net sales of approximately $530m in fiscal 2012.
CVC Capital Partners senior managing director Steven Buyse said that CVC is delighted to have entered into exclusive final negotiations for the acquisition of Campbell Europe.
"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 noted that will conduct an information and consultation process with its European and local works councils for the proposed transaction, in accordance with applicable laws.
Campbell has the option to cause the parties to execute a binding share purchase agreement after the conclusion of the consultation process. The proposed transaction is subject to clearance by the relevant European competition law authorities.
Campbell expects the proposed sale to be completed in the first quarter of its fiscal 2014.
