Campbell purchases Unilever's soups and sauces - Brief Article

Eurofood, Feb 1, 2001

Anglo-Dutch giant Unilever has said that it will sell its European soups and sauces businesses to US food company Campbell. The sale, which remains subject to approval from the European Commission, will cost Campbell a debt free price of [euro]1bn. As a result of the deal, the US-based firm will gain control of many well-known brand names, including; Batchelors in the UK, Royco in France, Heisse Tasse in Germany and McDonnells in Ireland.

Other brands, which will become part of the Campbell portfolio, are Oxo, Bla Band and the Lesieur range of mayonnaise products in France. Since its acquisition of US firm Bestfoods back in June 2000 (see Eurofood, 22 June 2000, p3), Unilever has been asked by the competition authorities to sell some of its activities. In conjunction with Unilever's `path to growth' strategy, with the company deciding to focus on its core brands, there have been many divestments from the Anglo-Dutch firm. The sale of the sauce and soups business in Europe follows the recent divestments of Unilever's European Bakery Supplies Business (EBSB) to Dutch firm CSM, and of its fragrance unit Elizabeth Arden. The total cumulative value of Unilever's divestments since its acquisition of US firm Bestfoods will reach [euro]2bn. The businesses that have been bought by Campbell have manufacturing sites in the UK, the Netherlands, Ireland, France and Sweden, employing some 1 300 workers, with net tangible assets of around [euro]100m. Annual sales of the businesses total approximately [euro]435m. Food director at Unilever, Patrick Cescau said, "We are delighted with this agreement for Campbell to acquire the entire portfolio of brands being sold as a result of the undertakings to the EC. We will continue to focus on the integration of Bestfoods and the growth of our business."