As flagged last month, Ireland’s Valeo Foods has reached an agreement with the Campbell Soup Company to acquire its European crisp business in a deal worth around £66m. The transaction includes UK-based Kettle Foods and Netherlands-based Yellow Chips.
Operating from a site in Norwich, Kettle Foods primary brands are its flagship KETTLE Chips and Metcalfe’s Skinny Popcorn. Meanwhile, Yellow Chips produces vegetable and organic crisps under private label and its own brands, including Go Pure.
The terms of the deal will see Campbell retain the Kettle brand business in the US and all other geographies, except for Europe and the Middle East where Valeo will take control.
Kettle Foods was bought by Campbell as part of its acquisition in 2017 of US food group Snyder’s-Lance. The latter had acquired Kettle as part of the Diamond Foods deal in 2016.
Valeo stated that it intends to continue the development of Kettle Foods as an expanding international export business by leveraging the group’s existing supply chain which distributes to approximately 90 countries globally.
The acquisition will add around €115m to Valeo’s current annual sales of over €850m. The firm, which is owned by CapVest Partners, already controls a host of well-known food brands, including Rowse Honey, Fox’s Glacier Mints, XXX Mints, Jacob’s, Batchelors, Odlums, Shamrock, Kelkin, Robert Roberts, Pedro and Balconi.
Seamus Kearney, Valeo’s CEO, said: “The global snacking segment continues to grow and the proposed acquisition of Kettle Foods provides a great opportunity to further strengthen our expanding portfolio of international brands. This acquisition is consistent with our long-term goal of building a dynamic international portfolio of attractive, resilient and popular food brands that consumers love to enjoy.”
The transaction, which is subject to regulatory approvals, is expected to close in the first quarter of 2020. It marks the latest divestment by Campbell, which has been selling off its international snack brands to focus on its core soup operations and its reduce debts.
NAM Implications:
- A cost-effective move for Valeo in terms of assessing the potential of Kettle for them in the EU and ME…
- If successful, the possibility of entering the US via a possible acquisition of the remaining Kettle rights?
- Competitors in the category beware.
