Arnott’s sale: US food giant Campbell Soup puts biscuit maker on the market

ARE Tim Tams, Mint Slices, Iced VoVos and Barbecue Shapes about to return to Aussie ownership? Maybe — Arnott’s, Australia’s favourite biscuit maker, is up for sale.

ARE Tim Tam, Mint Slice, Iced VoVo and Barbecue Shapes about to return to Aussie ownership?

Maybe — their US owner has put the Arnott’s biscuit company up for sale.

The divestment comes 21 years after canned-food titan Campbell Soup swallowed one of Australia’s most prized food brands in a deal that still provides some patriotic biscuit lovers with indigestion.

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It also comes as Campbell battles declining sales, with consumers looking for less-processed food products, and as the company comes under attack from a high-profile US activist investor.

Arnott’s employs about 2400 people in Australia.

Campbell said the decision to sell its international unit, which includes Arnott’s, was part of a strategy to focus on its North American operations, cut costs and pay down debt.

A number of Australia’s famous food items have returned to local hands in recent years.

The Violet Crumble chocolate bar came back into Australian ownership at the start of the year when Adelaide-based Robern Menz — a fourth generation family-owned confectionery business — bought the brand from Swiss food goliath Nestlé.

Robern Menz is investing $4 million in its factory to produce the chocolate and honeycomb treat and will hire 30 new workers.

Dairy group Bega Cheese splashed out $460 million to buy Vegemite from the Australian arm of US-based snackfood titan Mondelez International last year.

The deal returned the iconic spread to Australian ownership for the first time in more than 80 years.

Life Saver lollies will also be made in Australia once again after Darrell Lea bought the brand from Nestlé last month, although the confectionary favourite, which resembles a life preserver ring, was first created in the US in 1912.

Bega boss Barry Irvin celebrates after striking a deal to buy Vegemite at the start of 2017. Picture: Stuart McEvoy.

Sydney-based Arnott’s employs about 2400 people in Australia, with more in New Zealand, Indonesia, Malaysia, Singapore and Japan.

Campbell has engaged investment banks Goldman Sachs and Centerview Partners to conduct the sale of its Campbell International unit, which also includes refrigerated good business Campbell Fresh.

The two businesses together contributed about $US2.1 billion ($2.9 billion) of sales in the 2018 financial year.

Arnott’s is estimated to generate more than $1 billion in annual sales.

Campbell chief executive Keith McLoughlin said the company had explored all options before deciding to divest the Arnott’s business.

“The board concluded that, at this time, the best path forward to drive shareholder value is to focus the company on two core businesses in the North American market with a proven consumer packaged goods business model,” Mr McLoughlin said.

Campbell is being targeted by noted US activist investor and billionaire Dan Loeb, who heads up the Third Point hedge fund.

Mr Loeb has been pushing for Campbell to be sold entirely to a “strategic buyer” such as Kraft Heinz.