Campbell Soup has signed an agreement for the intended sale of its European chips business to Valeo Foods, a portfolio company of CapVest Partners, for approximately £66 million (approximately $80 million). Campbell’s European chips business includes UK-based Kettle Foods and Netherlands-based Yellow Chips. The transaction is subject to customary closing conditions including the relevant regulatory approvals and consultation with employee representative bodies. Campbell will use the proceeds from the divestiture to reduce debt.
Under the terms of the agreement, Campbell will retain the Kettle brand business in the United States and all other geographies except for Europe and the Middle East. Campbell intends to grow the Kettle brand as an important part of its snacks portfolio, which also includes the Cape Cod, Emerald, Goldfish, Lance, Late July, Milano, Pepperidge Farm, Snack Factory Pretzel Crisps, and Snyder’s of Hanover brands.
The transaction is expected to close in the first quarter of fiscal 2020.