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CTH to crunch a deal with Kelsen
Posted on Friday, 12 July 2019 13:28
CTH Invest is buying Denmark-based baked goods producer Kelsen Group from the Campbell Soup Company for USD 300.00 million.
The deal is slated to complete in the first quarter ending October 2019 and the proceeds will allow the vendor to reduce debt.
According to Reuters, Belgian’s CTH, an affiliate business of Ferrero, will also snap up Kelsen’s two production facilities in Denmark.
Headquartered in Nørre Snede, the target is part of the Campbell International division and makes a variety of cookie and biscuit products.
Kelsen has around 400 employees and includes brands such as Kimball, Good Time, Tim Tam and Prego and generated sales of USD 157.00 million in the last 12 months.
The vendor’s total net sales of USD 7.13 billion for the nine months ended 28th April 2019, up from USD 5.74 billion in the corresponding period of 2018.
Mark Clouse, chief executive of Campbell: “Selling Kelsen separately from the rest of our international business generates the greatest possible value for Campbell.”
He added that the deal would allow the group to focus on its brands and operations within North America.
The sale is part of the company’s ongoing strategy to divest its international division, which includes its simple meals company in Australia, Malaysia, Hong Kong and Japan and Arnott’s Biscuits, among other activities.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 19 deals targeting cookie and cracker manufacturers announced worldwide since the beginning of 2019.
Interestingly, the largest transaction involved Ferrero agreeing to buy certain assets from Kellogg’s such as fruit and fruit-flavoured snacks and pie crusts, for USD 1.30 billion.
Other companies targeted in this sector include Georgian Biscuit Company, Kriton Artos and Le Specialita.
© Zephus Ltd