Campbell to Acquire Kelsen Group to Expand Its International Presence and Drive Baked Snacks Growth in China
June 17 2013 - 4:33PM
Business Wire
Campbell Soup Company (NYSE:CPB) announced today that it
has entered into an agreement to acquire Kelsen Group A/S from Maj
Invest, a private equity firm, and several other investors. Based
in Nørre Snede, Denmark, Kelsen is a producer of quality baked
snacks that are sold in 85 countries around the world. Its primary
brands include Kjeldsens and Royal Dansk. Kelsen has established
distribution networks in markets in Asia, South America, the Middle
East and Africa as well as the United States. It is a market leader
in the assortment segment of the sweet biscuits category in China
and Hong Kong, where growth in sweet biscuits is outpacing the
growth of the $60 billion global sweet biscuits market.
Kelsen has been exporting premium Danish butter cookies to China
for more than twenty years. Its Kjeldsens brand has strong
awareness with retailers and consumers in major cities, and its
sales in China have grown at a compound rate exceeding 28 percent
in the last three years. The company generated DKK 1.043 billion
($180 million) in net sales for the year ended Dec. 31, 2012.
Aggregate net sales have grown at a compound double-digit rate
since 2009. Kelsen employs 366 people worldwide.
Denise Morrison, Campbell’s President and Chief Executive
Officer, said, “We are delighted to welcome the Kelsen team to
Campbell and to add Kelsen’s distinctive brands to Campbell’s
outstanding portfolio of baked snacks, including our Pepperidge
Farm cookies and crackers in North America and Arnott’s biscuits in
Australia. Kelsen will give Campbell a solid platform for growth in
baked snacks in China and for the expansion of our international
footprint. The acquisition of this successful business is another
important step in Campbell’s quest to delight new consumers through
expansion into higher-growth spaces, including fast-growing
emerging markets.”
Campbell plans to operate Kelsen as a standalone business based
in Denmark, reporting to Luca Mignini, President – Campbell
International.
Mignini said, “Kelsen’s combination with Campbell will represent
a wonderful marriage of complementary skills and capabilities. Its
strong position in China and Hong Kong will enhance our presence in
the region. At the same time, Kelsen’s talented management team
will have the opportunity to leverage Campbell’s marketing,
consumer insights, R&D and supply chain expertise to grow the
business in both new and existing markets.”
Brian Rønsholdt, CEO of Kelsen Group, said, “Kelsen has been
providing quality products to consumers for over 75 years. We look
forward to joining Campbell and its family of trusted brands.
Campbell’s consumer-focused capabilities and wide-ranging
experience in biscuit production will provide new resources for
enhancing Kelsen’s product lines and strengthening our engagement
with consumers around the world.”
The terms of the transaction were not disclosed. Closing is
subject to regulatory approvals and other customary conditions.
Campbell expects the acquisition to be modestly accretive beginning
in 2014.
Bruun & Hjejle in Denmark and King & Wood Mallesons in
Hong Kong served as Campbell’s legal counsel. Maj Invest and Kelsen
investors were advised by FIH Partners and Kromann Reumert served
as legal counsel.
About Campbell Soup Company
Campbell Soup Company is a manufacturer and marketer of
high-quality foods and simple meals, including soup and sauces,
baked snacks and healthy beverages. Founded in 1869, the company
has a portfolio of market-leading brands, including “Campbell’s,”
“Pepperidge Farm,” “Arnott’s,” “V8” and “Bolthouse Farms.” Through
its corporate social responsibility program, the company strives to
make a positive impact in the workplace, in the marketplace and in
the communities in which it operates. Campbell is a member of the
Standard & Poor's 500 and the Dow Jones Sustainability Indexes.
For more information, visit www.campbellsoupcompany.com and
https://twitter.com/CampbellSoupCo.
Forward-Looking Statements
This release contains "forward-looking statements."
Forward-looking statements can be identified by words such as
"anticipates," "intends," "plans," "believes," "estimates,"
"expects" and similar references to future periods. Examples of
forward-looking statements include, but are not limited to,
statements we make on the expected impact of the Kelsen Group
acquisition. Forward-looking statements are based on our current
expectations and assumptions regarding our business, our industry
and other future conditions. Forward-looking statements are subject
to inherent uncertainties, risks and changes in circumstances that
are difficult to predict. Our actual results may differ materially
from those contemplated by the forward-looking statements.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements include our
ability to realize the anticipated benefits from the acquisition of
Kelsen Group and the other factors described in the company's most
recent Form 10-K and subsequent SEC filings. We undertake no
obligation to update these statements to reflect new information or
future events.
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