Campbell Soup to acquire baked snacks producer Kelsen

US-based Campbell Soup Company has entered into an agreement to acquire Kelsen Group, a baked snacks producer based in Denmark, from private equity firm Maj Invest and several other investors for an undisclosed amount.

The acquisition is a part of the company’s strategy to strengthen its international presence and drive baked snacks growth in China.

Kelsen, based in Nørre Snede, is a producer of baked snacks that are sold in 85 countries around the world, and its primary brands include Kjeldsens and Royal Dansk.

The company employs 366 people worldwide and it has distribution networks in Asia, South America, the Middle East and Africa, as well as the US.

Kelsen is a leader in the assortment segment of the sweet biscuits market in China and Hong Kong.

Kelsen has been exporting Danish butter cookies to China for more than twenty years, and its sales in the country have grown at a compound rate exceeding 28% in the last three years

According to the company, its worldwide aggregate net sales have grown at a compound double-digit rate since 2009, and it generated net sales of DKK1.04bn ($180m) for the year ended 31 December 2012.

The acquisition of Kelsen’s will complement Campbell’s portfolio of baked snacks, including its Pepperidge Farm cookies and crackers in North America and Arnott’s biscuits in Australia.

Campbell president and chief executive officer Denise Morrison said; "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 Campbell International president Luca Mignini.

Mignini said that Kelsen’s strong position in China and Hong Kong will enhance Campbell’s 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," Mignini said.

Kelsen CEO Brian Rønsholdt said; "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 transaction, which is subject to regulatory approvals and other customary conditions, is expected to be modestly accretive beginning in 2014.

Bruun & Hjejle in Denmark and King & Wood Mallesons in Hong Kong served as Campbell’s legal counsel, while Maj Invest and Kelsen investors were advised by FIH Partners and Kromann Reumert.

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Image: Campbell plans to operate Kelsen as a standalone business based in Denmark. Photo: Courtesy of Coolcaesar.