KKR has agreed to acquire certain international operations from Campbell for an enterprise value of about $2.2 billion. The transaction includes Australian biscuit maker Arnott’s. Jefferies provided financial advice to KKR on the deal.
SYDNEY–(BUSINESS WIRE)–Global investment firm KKR and Campbell Soup Company (“Campbell”) today announced the signing of a stock and asset purchase agreement under which KKR will acquire certain international operations from Campbell (“Campbell International”) for an enterprise value of approximately US$2.2 billion.
Campbell International is a high-quality business that includes snacking and meal brands in the Asia Pacific region with leading manufacturing capabilities and distribution channels in attractive core markets. The majority of Campbell International’s sales are generated by Arnott’s, the iconic Australian biscuit brand with over 150 years of heritage. Arnott’s commitment to quality, innovation and manufacturing excellence is a hallmark of the business, alongside its product range of household names including Tim Tam and Shapes. Campbell International also comprises the regional portfolio of Campbell brands spanning soup, stock, juice and ready meals in markets including Australia, New Zealand, Indonesia, Malaysia, Singapore, Hong Kong and Japan. KKR will also acquire Campbell International’s manufacturing operations in Australia, Indonesia and Malaysia.
Under the terms of the agreement, KKR and Campbell will enter into a long-term licensing arrangement for the exclusive rights to use certain Campbell brands, including Campbell’s, Swanson, V8, Prego, Chunky and Campbell’s Real Stock, in Australia, New Zealand, Malaysia and other select markets in Asia Pacific, Europe, the Middle East and Africa.
David Lang, Member at KKR, said, “Campbell International represents a unique portfolio of iconic brands that are known and loved by consumers in Australia and across the world. We are privileged and excited to have the opportunity to invest in and grow Arnott’s as an independent business in Australia, in addition to further developing Campbell’s trusted brands across the broader Asian market. This is a milestone investment for KKR, and we look forward to working closely with the Campbell International management team to seek out new and exciting opportunities.”
KKR is making its investment primarily through its Core Investments strategy, which represents capital targeting longer-term opportunities. The Transaction is expected to close within the next six months, subject to customary closing conditions. Further details of the transaction are not disclosed.
KKR was advised by Jefferies, as its financial advisor, and Simpson Thacher & Bartlett LLP and Allens, as its legal counsels.
About Campbell International
Campbell International’s operations include Campbell’s simple meals businesses in Australia, Malaysia, Hong Kong and Japan, and manufacturing in Australia, Indonesia and Malaysia. The centerpiece of the business is Arnott’s, which Campbell acquired in 1997, and is one of Australia’s most iconic brands. Arnott’s regional headquarters are based in Sydney with operations in Sydney, Brisbane, Adelaide and Indonesia. Arnott’s and Campbell International operations (excluding the Kelsen Group) had combined net sales of approximately $885 million in the latest 12 months and employ approximately 3,800 people.
About Campbell Soup Company
Campbell (NYSE:CPB) is driven and inspired by our Purpose, “Real food that matters for life’s moments.” For generations, people have trusted Campbell to provide authentic, flavorful and affordable snacks, soups and simple meals, and beverages. Founded in 1869, Campbell has a heritage of giving back and acting as a good steward of the planet’s natural resources. The company is a member of the Standard and Poor’s 500 and the Dow Jones Sustainability Indexes. For more information, visit www.campbellsoupcompany.com or follow company news on Twitter via @CampbellSoupCo.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.