Campbell Soup Company is offloading Arnott’s alongside certain Campbell’s International operations to investment firm KKR in a $2.2 billion deal.
Combined with the previously announced sale of Kelsen Group, Campbell has now sold its entire International division for an aggregate price of $2.5 billion.
Acquired by Campbell in 1997, snack maker Arnott’s is one of Australia’s most iconic brands. Campbell’s International operations include Campbell’s simple meals businesses in Australia, Malaysia, Hong Kong and Japan, and manufacturing in Australia and Malaysia.
Arnott’s and Campbell’s International operations had combined net sales of approximately $885 million in the latest 12 months and employ approximately 3,800 people.
“This was a thorough and complex process in which we considered many options,” said Mark Clouse, Campbell’s President and CEO.
“By applying almost $3 billion of divestiture net proceeds to reduce debt, Campbell’s balance sheet will be stronger and capable of supporting our plan to grow our focused and differentiated portfolio.”
In August 2018, Campbell announced it would divest Campbell International and Campbell Fresh to focus the company on its core North American businesses and reduce debt.
The company completed the divestiture of its Campbell Fresh operations in June 2019, generating proceeds of approximately $565 million.