CAMDEN, N.J. — The Campbell Soup Co. has completed its $700 million acquisition of Pacific Foods of Oregon, a producer of organic broth and soup, shelf-stable plant-based beverages and meals and sides. The deal, which was announced in July, had been stalled by a lawsuit filed against Pacific Foods by a former shareholder.
The acquisition expands Campbell Soup’s footprint in the $11 billion organic food and beverage category. Pacific Foods will join Campbell’s Americas Simple Meals and Beverages division, which is led by Mark Alexander, president, and includes brands such as Campbell’s, V8, Prego, Pace and Plum Organics.
Joe Folds has been named vice-president and general manager of Pacific Foods. A 20-year veteran of Campbell Soup, Mr. Folds most recently was vice-president of strategy, business development and global brands, Global Biscuits and Snacks.
Pacific Foods will continue to operate out of Tualatin, Ore. Campbell Soup plans to accelerate growth in the business by expanding distribution, increasing marketing support for brand building and investing in research and development and the supply chain.
|Denise Morrison, president and c.e.o. of Campbell Soup|
“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,” said Denise Morrison, president and chief executive officer of Campbell Soup Co. “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.”
Founded in 1987, Pacific Foods generated approximately $232 million in sales in the past year.Campbell Soup expects the acquisition will be approximately 5c per share dilutive to fiscal 2018 earnings due to increased interest expense associated with the acquisition and integration costs. Management expects the business to contribute approximately $100 million in net sales in fiscal 2018.