Campbell Soup Co. announced Sept. 2 that it agreed to sell its European chips subsidiary to Valeo Foods, a portfolio company of private equity firm CapVest Partners LLP, for £66 million.
The food company said the subsidiary includes its U.K.-based Kettle Foods Ltd. unit and its Netherlands-based Yellow Chips BV business. Kettle Foods makes hand-cooked crisps, popcorn and rice snacks, while Yellow Chips produces vegetable and organic potato chips.
Campbell will retain ownership of the Kettle brand across all geographies except for Europe and the Middle East.
The divestment is part of Campbell's ongoing strategy to reduce its debt. The Camden, N.J.-based manufacturer most recently agreed to sell its Arnott's Biscuits Ltd. business to private equity firm KKR & Co. for $2.2 billion.
Ireland-headquartered Valeo Foods generates about €850 million in turnover through brands such as Rowse Honey, Jacob's and Fox's Glacier Mints.
Barclays and Weil Gotshal & Manges LLP advised Campbell on the deal.
The transaction is expected to close in the first quarter of fiscal 2020, subject to customary closing conditions including the relevant regulatory approvals and employee consultation.
