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.
Pacific Foods will continue to operate out of Tualatin, Oregon. 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 CEO 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 CEO 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 $0.05 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.