Campbell Soup Co. has agreed to sell its European Chips Business, which includes the popular potato chip brand Kettle Foods, to Ireland-based Valeo Foods, for approximately $80 million.
Campbell’s chips business includes U.K.-based Kettle Foods Ltd. and Netherlands-based Yellow Chips B.V.
Under terms of the deal, the Camden-based soup maker will retain the Kettle Brand business in the United States and all other geographies except for Europe and the Middle East, as it said it intends to grow the brand as an important part of its Snacks portfolio, which also includes the Cape Cod, Goldfish, Milano, Pepperidge Farm, Snack Factory Pretzel Crisps and Snyder’s of Hanover brands, among others.
Campbell will use the proceeds from the divestiture to reduce debt, it said.
The deal is part of Campbell’s ongoing divestiture of its international operations, which recently included the sale of its Australian snacks business Arnott’s and Danish snack manufacturer Kelsen Group.
The transaction is expected to close in the first quarter of fiscal 2020. Campbell was advised by Barclays and Weil, Gotschal & Manges LLP.
Valeo Foods is a a portfolio company of CapVest Partners LLP.
