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Campbell Completes Acquisition of Pacific Foods

CAMDEN, N.J.--(BUSINESS WIRE)--Dec. 12, 2017-- Campbell Soup Company (NYSE:CPB) today announced it has completed the acquisition of Pacific Foods of Oregon (Pacific Foods) for $700 million in cash, subject to customary purchase price adjustments.

Pacific Foods is a leading producer of organic broth and soup1 and also produces shelf-stable plant-based beverages and other meals and sides. Organic food is an $11 billion category in the U.S., which grew at a compound annual growth rate of 15.7 percent over the past four years.2 Pacific Foods offerings will join Campbell's portfolio of organic foods, which is in the top 10 in the industry.3

Denise Morrison, Campbell’s President and Chief Executive Officer, said, “Pacific Foods is an excellent strategic fit with Campbell’s health and well-being portfolio with its strong position in the faster-growing natural and organic category. We are thrilled to add such a powerful and respected organic brand to our company and intend to leverage our expertise and resources to build on Pacific’s track record of sales growth.”

Pacific Foods will be part of Campbell’s Americas Simple Meals and Beverages division, which includes Campbell’s soup, simple meals and shelf-stable beverage units in the U.S. and Canada. Led by Mark Alexander, President, the Americas division includes many leading brands such as Campbell’s, V8, Swanson, Prego, Pace and Plum Organics.

Alexander said, “Pacific is an authentic brand with a real food philosophy that closely mirrors our own. We deeply respect what Pacific has built, and our aim is to help Pacific to accelerate growth while continuing its purpose-driven mission: to make nourishing foods with simple, organic ingredients."

Campbell named Joe Folds as Vice President and General Manager, Pacific Foods. Folds has extensive, global experience leading businesses and brands for Campbell since joining the company in 1997. He was most recently Vice President, Strategy, Business Development and Global Brands, Global Biscuits and Snacks.

Campbell plans to invest in the business to drive growth. Campbell expects to expand distribution; boost marketing support for brand building; and invest in R&D and the supply chain to deliver operations and customer service excellence. Campbell will immediately begin to integrate Pacific Food’s key functions.

Founded in 1987 in Tualatin, Ore., Pacific Foods has more than 500 employees and operates a certified organic plant where it produces its namesake products. Campbell will continue to operate Pacific Foods out of Tualatin.

Including the impact of purchase accounting, an increase in interest expense associated with the acquisition and integration costs, Campbell expects that the acquisition will be approximately $0.05 per share dilutive to its fiscal 2018 earnings. Campbell expects that Pacific Foods will contribute approximately $100 million in net sales in fiscal 2018.

Pacific Foods generated approximately $232 million in trailing twelve-month net sales as of November 2017.

About Campbell Soup Company

Campbell (NYSE:CPB) is driven and inspired by our Purpose, “Real food that matters for life’s moments.” We make a range of high-quality soups and simple meals, beverages, snacks and packaged fresh foods. For generations, people have trusted Campbell to provide authentic, flavorful and readily available foods and beverages that connect them to each other, to warm memories and to what’s important today. Led by our iconic Campbell’s brand, our portfolio includes Pepperidge Farm, Bolthouse Farms, Arnott’s, V8, Swanson, Pace, Prego, Plum, Royal Dansk, Kjeldsens, Garden Fresh Gourmet and Pacific Foods. Founded in 1869, Campbell has a heritage of giving back and acting as a good steward of the planet’s natural resources. The company is a member of the Standard & Poor’s 500 and the Dow Jones Sustainability Indexes. For more information, visit www.campbellsoupcompany.com or follow company news on Twitter via @CampbellSoupCo. To learn more about how we make our food and the choices behind the ingredients we use, visit www.whatsinmyfood.com.

Forward-Looking Statements

This release contains “forward-looking statements” that reflect Campbell’s current expectations about the impact of its future plans and performance, including the acquisition of Pacific Foods, on Campbell’s business or financial results. These forward-looking statements rely on a number of assumptions and estimates that could be inaccurate and which are subject to risks and uncertainties. The factors that could cause Campbell’s actual results to vary materially from those anticipated or expressed in any forward-looking statement include (1) Campbell may be unable to achieve the anticipated benefits of the Pacific Foods acquisition; (2) Campbell may not be able to integrate the Pacific Foods business and operations in a timely and cost-efficient manner; (3) revenues or other operating results following the Pacific Foods acquisition may be lower than expected; (4) operating costs, customer loss, and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, and suppliers) may be greater than expected in connection with the closing of the Pacific Foods acquisition; (5) Campbell may assume unexpected risks and liabilities in the Pacific Foods acquisition; (6) integrating Pacific Foods into Campbell’s business may distract Campbell’s management from other important matters; and (7) the other factors described in Campbell’s most recent Form 10-K and subsequent Securities and Exchange Commission filings. Forward-looking statements speak only as of the date made. Campbell disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release.

1 IRI Total US MULO latest 52 weeks ending 11/26/17
2 IRI Market Advantage: Total Edible Organics US MULO, latest 52 weeks ending 11/26/17
3 IRI Total US MULO latest 52 weeks ending 10/29/17

Source: Campbell Soup Company

Campbell Soup Company
INVESTOR CONTACT:
Ken Gosnell, 856-342-6081
Ken_Gosnell@campbellsoup.com
or
MEDIA CONTACT:
Thomas Hushen, 856-342-5227
Thomas_Hushen@campbellsoup.com