US-based Campbell Soup has agreed to acquire Plum Organics, a leading provider of premium, organic foods and snacks that cater to the nutritional needs of babies, toddlers and children, for an undisclosed amount.
Established in 2007, Plum Organics is based in Emeryville, California and 'Plum' is a leading organic baby food brand in the US and worldwide.
Plum product portfolio includes organic baby food in convenient squeezable pouches; Super Puffs, a line of bite-sized nutritious puffed snacks; Plum Mighty Four, a new line of nutritious toddler snack pouches; and Plum Kids 'Mashups', a line of fun squeezable fruit, veggies and Greek yogurt.
Campbell will fund the transaction through available credit. The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to be completed in the fourth quarter of 2013.
The acquisition of Plum will facilitate Campbell with a platform to extend its core categories of simple meals, snacks and beverages and enhance its access to a new generation of consumers.
Plum's products are available in key customer channels, including online, natural and baby specialty outlets.
Campbell stated that with the addition of Plum Organics' products, Campbell's portfolio of kids-focused soups, beverages and snacks will have annual sales of more than $1bn.
Campbell president and chief executive officer Denise Morrison said 'Plum Organics' nutritious, on-trend products are a great addition to the company's North American portfolio of leading brands.
"The acquisition will help deliver on our dual mandate to strengthen our core businesses and to expand into faster-growing categories and adjacencies. It represents another step toward our long-term goal of shifting Campbell's center of gravity," Morrison added.
Campbell plans to operate Plum as a standalone business within its Campbell North America division. Plum Organics' management team will join Campbell and continue to lead Plum.
Plum Organics reported gross sales of $93m for the year ended 31 December 2012.
Davis Polk & Wardwell served as legal counsel to Campbell, while Plum was advised by Houlihan Lokey, and Jones Day acted as legal counsel.
