Campbell Soup to acquire Pacific Foods for $700m
Campbell Soup has signed a $700m agreement to acquire organic broth and soup producer Pacific Foods.
Through the acquisition, Campbell intends to increase its organic food and beverage portfolio, while meeting the changing tastes and preferences of consumers.
Upon completion of the deal, the company will have improved access to natural and organic customers and channels.
Pacific Foods has generated approximately $218m in trailing 12-month net sales as of 31 May.
Campbell Soup president and CEO Denise Morrison said: “This acquisition is consistent with our purpose, ‘Real food that matters for life’s moments'.
“The acquisition allows us to expand into faster-growing spaces such as organic and functional food. It advances our strategic imperatives around real food, transparency, sustainability and health and wellbeing.”
Using its expertise and scale, Campbell seeks to invest in Pacific Foods, in order to drive growth.
It is also planning to expand distribution, as well as enhance marketing support for brand building to engage consumers and shoppers.
The company also plans to invest in R&D and the supply chain to deliver operations.
When the transaction is completed, Pacific Foods will operate as part of Campbell’s Americas Simple Meals and Beverages division, which includes soup, simple meals and shelf-stable beverage units in the US, Canada and Latin America.
The latest acquisition is Campbell’s fifth in as many years, as it continues to reorganise its portfolio for further growth.
Its previous acquisitions are Bolthouse Farms, organic baby food company Plum and biscuit company Kelsen, as well as fresh salsa and hummus manufacturer Garden Fresh Gourmet.