Campbell Soup Co. on Monday announced it will sell its European Chips Business to Valeo Foods, a portfolio company of CapVest Partners LLP, for approximately $80 million.
Campbell’s European Chips Business includes U.K.-based Kettle Foods Ltd. and Netherlands-based Yellow Chips B.V.
Under the terms of the agreement, Camden-based Campbell said it will retain the Kettle Brand business in the United States and all other geographies except for Europe and the Middle East. Campbell intends to grow the Kettle Brand as an important part of its Snacks portfolio, which also includes the Cape Cod, Emerald, Goldfish, Lance, Late July, Milano, Pepperidge Farm, Snack Factory Pretzel Crisps and Snyder’s of Hanover brands.
Campbell Soup Co. headquarters in Camden. – CAMPBELL SOUP CO.
Based in Norwich, England, Kettle Foods makes hand-cooked crisps, popcorn, rice snacks and vegetable-based chips. Its primary brands are Kettle Chips and Metcalfe’s skinny popcorn.
The sale also includes Netherlands-based Yellow Chips, a producer of high-quality vegetable and organic potato chips under private label snacks and its own premium brands, including Go Pure.
The transaction is expected to close in the first quarter of fiscal year 2020 and is subject to customary closing conditions, including the relevant regulatory approvals and consultation with employee representative bodies.
Campbell will use the proceeds from the divestiture to reduce debt. Campbell was advised by Barclays and Weil, Gotshal & Manges LLP.
