Campbell Soup has agreed to sell European simple meals business to UK private equity firm CVC Capital Partners (CVC).
The €400m deal 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. It also includes four plants in Puurs, Belgium; Le Pontet, France; Lubeck, Germany; and Karpalund, Sweden.
It excludes Campbell's recently-acquired Kelsen Group, which will continue its operations in Denmark and the export of its products to countries in Europe and throughout the world.
The company will continue to export Pepperidge Farm products throughout Europe and its products in the UK, and the Middle East and Africa. It intends to use the proceeds to pay down debt and for other general corporate purposes.
Campbell president and CEO Denise Morrison said, "This sale reflects a strategic choice. We are in the process of reshaping our portfolio to change Campbell's future growth trajectory."
"As part of this effort, we will be focusing our investments, resources and talent on building the brands that we believe we can grow around the world, strengthening our core and expanding our business in faster-growing geographies and categories," Morrison added.
The transaction, which is subject to regulatory approvals, is expected to be completed in the fourth quarter of calendar 2013.
