Campbell to acquire Pacific Foods for $700 million
Campbell Soup has entered into an agreement to acquire Pacific Foods of Oregon for $700 million in cash.
Campbell Soup has entered into an agreement to acquire Pacific Foods of Oregon for $700 million in cash. Founded in 1987, Pacific Foods is a leading producer of organic broth, soup, and shelf-stable plant-based beverages and other meals and sides. Pacific Foods has a sustained track record of growth, and generated approximately $218 million in trailing 12-month net sales as of May 31, 2017.
Pacific Foods is a natural foods industry pioneer that has strong health and well-being and organic credentials, particularly with younger consumers. Its products and approach are very closely aligned with Campbell’s real food philosophy. Pacific Foods will help accelerate Campbell’s efforts to deliver real food and beverages that meet consumers’ changing tastes and preferences. The acquisition will also further Campbell’s efforts to drive innovation in health and well-being to reinvent the center store, while giving the company more access to natural and organic customers and channels.
“The acquisition allows us to expand into faster-growing spaces such as organic and functional food,” said Denise Morrison, Campbell’s president and CEO. “Moreover, Pacific Foods is an excellent fit with Campbell—strategically, culturally, and philosophically. It advances our strategic imperatives around real food, transparency, sustainability, and health and well-being.”
Campbell plans to bring its expertise and scale to Pacific Foods and invest in the business to drive full force growth. Campbell expects to expand distribution; boost marketing support for brand building to engage consumers and shoppers; and invest in R&D and the supply chain to deliver operations and customer service excellence.
Pacific Foods will become part of Campbell’s Americas Simple Meals and Beverages division, which includes Campbell’s soup, simple meals, and shelf-stable beverage units in the United States, Canada, and Latin America. The division is led by Mark Alexander, president, and includes many well-known brands including Campbell’s, V8, Swanson, Prego, Pace, and Plum Organics.