Campbell Soup has agreed to acquire organic food manufacturer Pacific Foods of Oregon for $700m in an all cash deal to expand its footprint in the rapidly growing health and well-being categories.
Based in Tualatin, Oregon, Pacific Foods produces organic broth and soup, meals and sides apart from shelf-stable plant-based beverages.
The New Jersey-based canned soup producer Campbell expects that the acquisition will help in accelerating its efforts to produce real food and beverages to cater to the changing tastes and preferences of consumers.
Pacific Foods acquisition is also expected to help Campbell Soup in its efforts to bring innovation in health and well-being products for customers who are looking for natural and organic food.
Campbell president and CEO Denise Morrison said: “Pacific is an authentic brand with a loyal consumer following. The acquisition allows us to expand into faster-growing spaces such as organic and functional food.
“Moreover, Pacific Foods is an excellent fit with Campbell — strategically, culturally and philosophically. It advances our strategic imperatives around real food, transparency, sustainability and health and well-being.”
Pacific Foods, which will operate under Campbell’s Americas Simple Meals and Beverages division after the acquisition, will be leveraging the expertise and scale of the soup producer. It will also get investment from its new parent company to expand its potential further.
As part of it, Campbell Soup plans to expand distribution, increase marketing support for brand awareness, and invest in R&D and the supply chain of Pacific Foods’ product range.
Pacific Foods CEO and co-founder Chuck Eggert said: "We’ve spent the past 30 years focused on making nourishing foods with an emphasis on simple, organic ingredients and authentic, rich flavors.
“Looking ahead, a future with Campbell means we can maintain what we value while accelerating growth of the brand in a way that we couldn’t do alone, reaching more people while increasing our impact on sustainable agriculture.”
Campbell’s acquisition of Pacific Foods comes after a $10m investment in US online meal-kit business Chef'd in late May.
