Kraft Heinz, Mondelez make the cut in Campbell Soup's international business auction: sources
U.S. food companies Kraft Heinz Co (KHC.O) and Mondelez International Inc (MDLZ.O) have been short-listed to participate in the second round of Campbell Soup Co’s (CPB.N) auction of its international business, people familiar with the matter said.
The development boosts Campbell Soup’s chances of divesting its international portfolio, which includes its Australian cookie brand Arnott’s and Danish baked snacks maker Kelsen Group, with one deal, two sources said on Sunday. Both Kraft Heinz and Mondelez are interested in the assets so they can expand their global footprint. Based on the first-round bids received, Campbell Soup could fetch close to $3 billion for its international business, the sources added.
Under pressure from investors to boost its profitability and stock performance, Campbell Soup announced in August it would make preparations to divest its international portfolio as well as its “fresh” business, which includes Bolthouse Farms and Garden Fresh Gourmet.
This will allow it to reduce its $8 billion debt pile and focus on its core North American market, as well as its snacks, meals and beverages businesses. Most of the debt weighing on Campbell Soup is the legacy of its $6.1 billion acquisition in March of snack maker Snyder’s-Lance Inc.
https://www.reuters.com/article/us-campbell-soup-divestiture/kraft-heinz-mondelez-make-the-cut-in-campbell-soups-international-business-auction-sources-idUSKCN1OM0GB
