Campbell Soup Company has agreed to offload Denmark-based Kelsen Group to Ferrero affiliate CTH Invest for approximately $300 million, as the company continues its debt reduction strategy.
Based in Nørre Snede, Denmark, Kelsen is a producer of baked snacks, and its primary brands include Kjeldsens and Royal Dansk. Kelsen had net sales of approximately $157 million in the last 12 months.
Belgian-based CTH Invest has said it will assume control over Kelsen’s two production facilities in Denmark and add new biscuits assortments to its portfolio in future.
Kelsen is part of the Campbell International division, which also includes Arnott’s biscuits, Campbell’s simple meals businesses in Australia, Malaysia, Hong Kong and Japan, and manufacturing operations in Australia, Indonesia and Malaysia.
Last year, Campbell outlined its plan to divest both its Campbell Fresh and Campbell International businesses and launched a portfolio review in August 2018, as the company aims to significantly reduce debt and boost its balance sheet.
As part of the portfolio review, Campbell completed the full divestiture of its Bolthouse Farms arm to private equity firm Butterfly in April for approximately $510 million, in a deal which completed the full divestiture of the company’s Campbell Fresh division.
The company claimed that the sale of the Campbell Fresh businesses allowed the company to reduce its debt by approximately $570 million.
According to a statement from Campbell’s, the process to divest the remainder of Campbell International, including Arnott’s, is still ongoing.
Mark Clouse, Campbell’s president and CEO, said: “The sale of Kelsen Group supports our strategy to focus on North America where we have iconic brands and strong market positions, while reducing debt.
“Throughout the divestiture process, we have considered many options for our valuable international assets.
“Selling Kelsen separately from the rest of our international business generates the greatest possible value for Campbell. We are committed to the divestiture of the remainder of our international operations and will remain disciplined as we move forward.”
© FoodBev Media Ltd 2019