It Is Official: Campbell Sells Arnott’s to KKR for USD2.2bn

Campbell Soup Co. confirmed that it has signed a deal to sell its Australian snacks unit Arnott’s and some of its international operations to KKR for USD2.2bn as the U.S. company works on reducing debt.

Campbell and KKR will enter into a long-term licensing arrangement for the exclusive rights to use certain Campbell brands, including Campbell’s, Swanson, V8, Prego, Chunky and Campbell’s Real Stock, in Australia, New Zealand, Malaysia and other select markets, the company said.

“This was a thorough and complex process in which we considered many options. By applying almost USD3bn of divestiture net proceeds to reduce debt, Campbell’s balance sheet will be stronger and capable of supporting our plan to grow our focused and differentiated portfolio,” Campbell CEO Mark Clouse said.

KKR & Co announced last week it was buying Campbell’s Arnott’s that will give it ownership of top-selling biscuit brands such as Tim Tam.