EUROPE – Irish food group, Valeo Foods has entered into an agreement with Campbell Soup Company to acquire its European crisp business for approximately €73 million (US$80 million)
Under the agreement, Valeo will acquire Campbell’s Kettle Foods Limited – which manufactures and distributes hand cooked crisps under the Kettle, Go Pure and Metcalfe’s Skinny Popcorn brands- and its sister company Yellow Chips.
Campbell will retain ownership of the Kettle brand and its operation in the US and other geographies, with Valeo taking command of the snack brands sold across the UK, Europe and the Middle East.
The deal is part of Campbell Soups ongoing divestiture of its international business as it narrows its focus on its core canned soup unit and snacks.
Campbell has only owned Kettle Foods since 2018, when it acquired Snyder’s-Lance, the brand’s parent – which had previously acquired Kettle from Diamond Foods, another US-based group.
The acquisition is estimated to add approximately €115 million (US$125.83m) to Valeo Foods’ current annual sales of over €850 million (US$930m), resulting in a total revenue of around €965 million (US$1.056bn).
“The global snacking segment continues to grow and the proposed acquisition of Kettle Foods provides a great opportunity to further strengthen our expanding portfolio of international brands,” commented, Seamus Kearney, CEO of Valeo Foods.
“This acquisition is consistent with our long-term goal of building a dynamic international portfolio of attractive, resilient and popular food brands that consumers love to enjoy,” he added.
When the transaction closes, Kettle Foods will join Valeo Foods’ portfolio of consumer brands including Rowse Honey, Barratt, Jacob’s, Fox’s Glacier Mints and Balconi.
Valeo intends to continue the development of Kettle Foods as an expanding international export business by leveraging the Group’s existing supply chain which distributes to approximately 90 countries globally.
Kettle Foods acquisition will add Valeo’s list of 12 successfully completed acquisitions over the past nine years.
Valeo’s deal for Kettle UK may spark a new phase in the Irish company’s strategy of consolidation in the Irish, UK and European ambient foods space.