Campbell To Sell Arnott's, Certain International Operations To KKR For $2.2 Bln

(RTTNews) - Campbell Soup Co. (CPB) on Friday announced its agreement to sell Arnott's and certain Campbell International operations to investment firm KKR & Co. L.P. (KKR) for an enterprise value of approximately $2.2 billion.

The transaction is expected to close within the next six months, subject to customary closing conditions.

Under the stock and asset purchase agreement, KKR will buy Campbell portfolio that includes Australian biscuit brand Arnott's, as well as Campbell's simple meals and snacking brands in markets including Australia, New Zealand, Indonesia, Malaysia, Singapore, Hong Kong and Japan. KKR will also buy Campbell International's manufacturing operations in Australia, Indonesia and Malaysia.

Under the deal terms, KKR and Campbell will enter into a long-term licensing arrangement for the exclusive rights to use certain Campbell brands in Australia, New Zealand, Malaysia and other select markets in Asia Pacific, Europe, the Middle East and Africa. These brands include Campbell's, Swanson, V8, Prego, Chunky and Campbell's Real Stock.

In early July, Campbell Soup signed a definitive agreement to sell Kelsen Group, part of Campbell International, to a Ferrero affiliated company for $300 million.

Mark Clouse, Campbell's President and CEO, then said that the sale supports its strategy to focus on North America where it has iconic brands and strong market positions, while reducing debt.