FDBusiness.com

Campbell Soup Company has announced a series of significant actions it is taking as part of its strategy and portfolio review to improve performance and drive shareholder value. The actions include focusing the company on two distinct businesses – Campbell Snacks and Campbell Meals and Beverages – in its core North American market. Consequently, Campbell Soup Company is pursuing the divestment of non-core businesses to focus and improve the company’s portfolio, with proceeds used to significantly reduce debt.

To this end, Campbell has engaged Goldman Sachs and Centerview Partners to commence a process to divest its Campbell International and Campbell Fresh businesses in a manner that maximizes value. Campbell International consists of Arnott’s and the Kelsen Group, along with the company’s manufacturing operations in Indonesia and Malaysia and its businesses in Hong Kong and Japan. Campbell Fresh includes Bolthouse Farms, Garden Fresh Gourmet and the company’s refrigerated soup business. Fiscal 2018 net sales of these businesses totalled approximately $2.1 billion. Proceeds from the divestitures will be used to significantly reduce debt.

Campbell Soup Company is also increasing its cost savings target to $945 million by financial year 2022, including the expected savings from its recent Snyder’s-Lance deal.

Keith McLoughlin, president and chief executive of Campbell Soup Company, comments: “Campbell’s board of directors considered a full slate of strategic options, including optimizing the portfolio, divesting businesses, splitting the company, and pursuing a sale. The board concluded that, at this time, the best path forward to drive shareholder value is to focus the company on two core businesses in the North American market with a proven consumer packaged goods business model. Importantly, the Board remains open and committed to evaluating all strategic options to enhance value in the future.”