Campbell Soup confirms sale of Arnott’s to KKR for $3.15bn

KKR has confirmed it will gobble up the Tim Tams maker from Campbell’s Soup for more than $3bn.

The Sydney-based Arnott’s employs 2,400 people across all states and territories.

Campbell Soup has confirmed that it has signed an agreement to sell its Arnott’s biscuits business and certain other international Campbell operations to KKR & Co. for about $US2.2 billion ($3.15bn).

The portfolio of businesses that will be picked up by the private-equity firm includes Australia’s popular Arnott’s biscuits and Campbell’s simple meals and snack brands in markets including Australia, New Zealand, Indonesia, Malaysia, Singapore, Hong Kong and Japan, the companies said Friday.

The deal also includes manufacturing operations in Australia, Indonesia and Malaysia and will given KKR exclusive rights to some of the tinned soup company’s brands in select markets.

Last August, Campbell said it would sell off its international and refrigerated-foods operations to focus on its North American businesses, using the money raised to slash debt.

Recently, the US-based company agreed to sell Danish baked-snacks business Kelsen to an affiliate of Nutella-maker Ferrero Group for $US300m. In June, Campbell closed the sale of Bolthouse Farms to an arm of Los Angeles-based Butterfly Equity for $US510m, completing its exit from the Campbell Fresh division after earlier deals to sell Garden Fresh Gourmet and its refrigerated-soup business.

With the sale of Arnott’s and the other operations, Campbell said this completes the divestment of its entire Campbell International division for a total of $US2.5bn.

KKR plans to transition certain Campbell International operations into a stand-alone company. The deal is expected to close within the next six months, the investment company said.

The Arnott’s and Campbell International operations had combined net sales of about $US885m in the latest 12 months and employ roughly 3800 people, Campbell said. It acquired Arnott’s in 1997.

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