US-based Campbell Soup has agreed to acquire baked snacks producer Kelsen Group from Maj Invest, a Danish private equity firm, and several other investors for an undisclosed amount.
Kelsen, based in Norre Snede, Denmark, is a producer of baked snacks that are sold in 85 countries around the world. The company's brands include Kjeldsens and Royal Dansk. Kelsen has distribution networks in markets in Asia, South America, the Middle East and Africa as well as the US.
A leading firm in the assortment segment of the sweet biscuits category in China and Hong Kong, Kelsen has been exporting Danish butter cookies to China for more than twenty years. The company generated DKK1.04bn ($180m) in net sales for the year ended 31 December 2012 and employs 366 people worldwide.
Campbell president and chief executive officer Denise Morrison said that Kelsen will give Campbell a solid platform for growth in baked snacks in China and for the expansion of our international footprint.
"Kelsen will give Campbell a solid platform for growth in baked snacks in China and for the expansion of our international footprint," Morrison added.
Campbell plans to operate Kelsen as a standalone business based in Denmark, reporting to Campbell International president Luca Mignini.
Mignini said that Kelsen's strong position in China and Hong Kong will enhance Campbell presence in the region.
"At the same time, Kelsen's talented management team will have the opportunity to leverage Campbell's marketing, consumer insights, R&D and supply chain expertise to grow the business in both new and existing markets."
The transaction, which is subject to regulatory approvals and other customary conditions, is expected to be modestly accretive beginning in 2014.
Bruun & Hjejle in Denmark and King & Wood Mallesons in Hong Kong served as Campbell's legal counsel, while Maj Invest and Kelsen investors were advised by FIH Partners and Kromann Reumert.
