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Campbell Soup Company has completed the sale of its Pop Secret popcorn business to Our Home, an independent company that produces better-for-you snacks.
The terms of the transaction have not been disclosed, but it is notable that Pop Secret generated approximately $120 million in net sales for Campbell in fiscal 2024.
This divestiture aligns with Campbell's strategic initiative to streamline its snacks portfolio, enabling the company to concentrate on its core brands and drive growth within its remaining product lines.
Chris Foley, executive vice president and president of Campbell’s snacks division, said: "This marks another step in our journey to strategically focus our Snacks portfolio. The sale of Pop Secret will drive greater focus and accelerated growth across our Snacks division and portfolio of leading brands.”
The sale is expected to have a modest impact on Campbell’s fiscal 2025 earnings per share, projected to be dilutive by about $0.04. This adjustment reflects the implications of a transition service agreement and related cost actions following the sale.
BofA Securities served as the exclusive financial advisor for Campbell in this transaction, while Blank Rome acted as legal counsel.
For Campbell, this sale is part of a broader strategy to refine its product offerings and respond to evolving consumer trends, particularly in the health-conscious segment of the food industry.
In March 2024, Campbell announced that it had finalised the acquisition of Sovos Brands for approximately $2.7 billion.
The Sovos portfolio consists of food products including pasta sauces, dry pasta, soups, frozen entrées, frozen pizza and yogurts under the brand names Rao’s, Michael Angelo’s and Noosa.
Campbell said that the Sovos acquisition will add a “high-growth, market-leading premium portfolio” of brands to its meals and beverages division.
The company reported net sales of $9.4 billion for fiscal 2023 and maintains a diverse portfolio that includes well-known brands such as Goldfish, Pepperidge Farm and V8.
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