Campbell Soup to Sell European Simple Meals Business

CAMDEN, N.J.Campbell Soup Company today signed a definitive agreement for the sale of its European simple meals business to CVC Capital Partners (CVC), a leading global private equity firm, for 400. Campbell intends to use the proceeds of the sale to pay down debt and for other general corporate purposes.

Under the terms of the agreement, CVC will acquire Campbells national brands of soups, sauces and simple meals, including Liebig and Royco in France, Erasco in Germany, Blå Band in Sweden and Devos Lemmens and Royco in Belgium. The transaction also includes four plants in Puurs, Belgium; Le Pontet, France; Lubeck, Germany; and Karpalund, Sweden.

The agreement does not include Campbells recently-acquired Kelsen Group, which will continue its operations in Denmark and the export of its products to countries in Europe and throughout the world. Campbell will continue to export Pepperidge Farm products throughout Europe and Campbells products in the United Kingdom and the Middle East and Africa.

This sale reflects a strategic choice. We are in the process of reshaping our portfolio to change Campbells future growth trajectory. As part of this effort, we will be focusing our investments, resources and talent on building the brands that we believe we can grow around the world, strengthening our core and expanding our business in faster-growing geographies and categories," said Campbells President and Chief Executive Officer Denise Morrison.

The transaction is subject to clearance by the relevant European competition law authorities. Campbell anticipates that the transaction will be completed in the fourth quarter 2013.