Campbell’s Soup to reorganize, sell Bolthouse Farms
The Campbell Soup Company said as part of a plan to increase profits it will focus on its North American market and divest itself of “non-core businesses.”
Those businesses include its Campbell International and Campbell Fresh divisions, of which Bolthouse Farms is a component. Campbell’s acquired Bolthouse in 2012 for $1.55 billion in cash. Bolthouse’s products include fresh carrots and premium juices, along with refrigerated salad dressings.
“Campbell’s Board of Directors considered a full slate of strategic options, including optimizing the portfolio, divesting businesses, splitting the company and pursuing a sale,” said Campbell’s interim President and CEO Keith McLoughlin. “The board concluded that, at this time, the best path forward to drive shareholder value is to focus the company on two core businesses in the North American market with a proven consumer packaged goods business model.”
Campbell’s outlined its new approach in an Aug. 30 release.
McLoughlin said the company is moving forward with a sense of urgency to complete the planned changes in the 2019 fiscal year. Further, he said, the board and management team are committed to deleveraging the company, retaining its investment grade credit rating and maintaining its dividends.