Campbell divests Kelsen Group to CTH for $300m

US-based Campbell Soup Company has completed the previously announced divestiture of its Danish company Kelsen Group to CTH in a deal valued at $300m.

CTH is a Belgian holding company affiliated with the Ferrero Group.

Proceeds from the sale will be used by Campbell to minimise its debt.

Based in Denmark, Kelsen is engaged in the production of baked snacks that are retailed in the market under Kjeldsens and Royal Dansk brands.

Kelsen has an established distribution network and its products are distributed to more than 100 countries across the globe.

As per the terms of the agreement, CTH acquired two production facilities in Nørre Snede and Ribe. The company will retain management, as well as the employees associated with the Kelsen Group.

Kelsen is part of Campbell International. Its operations also include Arnott’s biscuits, Campbell’s simple meals businesses in Australia, Malaysia, Hong Kong and Japan, and manufacturing operations in Australia, Indonesia and Malaysia.

Campbell said that the process to divest the remainder of its operations, including Arnott’s, is proceeding.

In July, Campbell Soup Company signed a definitive agreement to sell Kelsen to CTH.

At the time of signing the agreement, Campbell president and CEO Mark Clouse said that the sale supports the company’s strategy to focus on North America.

Last month, Investment firm KKR signed a stock and asset purchase agreement with Campbell Soup Company to acquire Arnott’s and certain operations for an enterprise value of nearly $2.2bn.

In the last 12 months, Arnott’s and Campbell’s international operations reported combined net sales of $885m.