Campbell Soup Company (NYSE:CPB) has agreed today to purchase Bolthouse Farms from the private company Madison Dearborn Partners LLC of California. The deal is said to be worth $1.55 billion in cash and should add nearly $700 million in revenue and nearly $100 million in earnings before interest and taxes (EBIT) to Campbell’s portfolio. For Campbell’s most recent year end financials revenue came in at $7.72 billion and the company posted an EBIT of -$138 million.
Campbell’s is the world largest soup producer, outside the soup realm in North America they also own and produce Pace salsas and sauces, Pepperidge Farm breads and cookies, Prego Italian sauces, and V8 vegetable juices. In addition they market several other brands of soups and sauces in Greater Europe and Asia Pacific.
Campbell has said that Bolthouse Farms, a leading carrot, salad dressing, and premium beverage producer employs 2,100 and will continue to operate independently from the Campbell’s brand. The soon to be former owner, Madison Dearborn Partners LLC is invested in a wide range of brands from LA Fitness and Topps in the physical fitness and sporting memorabilia arena’s to Univision, Sorenson, and MetroPCS in communications. Madison Dearborn Partners LLC was said to be mulling over a possible IPO to spinoff Bolthouse Farms, one has to wonder if they turned and ran in the face of the Facebook IPO wake.
Campbell Soup Company closed Monday down 0.86% to 32.71, trailing the Dow Jones Industrial Average by 0.58% and continued its downward trend which started in July.
Foodbeat’s take: Not sure how much traction there is out there for 100% carrot juice but Bolthouse produces an array of smoothies and protein drinks that I look forward to seeing alongside V8 juice in the grocery store.
Source(s): The Wall Street Journal, The Toronto Star