KKR to Buy Arnott’s Biscuits from Campbell Soup for USD2.2bn 

Global buyout firm KKR & Co is set to add Australia’s biggest biscuits company to its portfolio, after the American food giant Campbell Soup Co has finally agreed to sell Arnott’s for USD2.2bn. 

The two parties are preparing to sign a deal and a Campbell Soup spokeswoman told Street Talk that the process was “ongoing” and it was not a “done deal yet for KKR”.

Campbell Soup first flagged its international arm was for sale last August following a strategic review. It divested one part of the up-for-sale portfolio – Denmark’s Kelsen Group – to Ferrero for USD300m in July 2019.

The Campbell International portfolio recorded USD1.05bn revenue and USD202m in earnings before interest, tax, depreciation, and amortization in the 2018 financial year from the sale of snacks, soup, stock and juices in Australia, New Zealand, Asia Pacific and EMEA.

Snacks business Arnott’s is by far the biggest single brand in the portfolio, accounting for USD737m annual revenue according to sale documents that were sent to potential buyers earlier in the process.