US owners are selling Arnott’s
TIM Tams, Iced Vovos and Monte Carlos are up for sale.
Arnott’s has been put on the market by Campbell Soup Co, 21 years after the US food giant bought the iconic Australian brand in a deal that prompted disquiet among patriotic biscuit lovers Down Under.
Campbell’s move to exit its international business and refocus on core operations is part of a strategy to cut costs by more than $1.3 billion by 2022 and pay down debt.
Sydney-based Arnott’s employs about 2400 people in Australia, with more in New Zealand, Indonesia, Malaysia, Singapore and Japan.
Campbell’s has engaged Goldman Sachs and Center- view Partners to conduct the sale of its Campbell International unit, which includes Arnott’s and refrigerated goods business Campbell Fresh.
The two businesses contributed about $2.9 billion of sales in the last financial year.
Campbell’s interim president and chief executive Keith McLoughlin said the firm had explored all options before deciding to divest the Arnott’s business.
“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,” Mr McLoughlin said.
The decision raises the prospect that Arnott’s could follow Vegemite in returning to Australian ownership.
Dairy giant Bega Cheese last year bought the Aussie spread and other well-known grocery brands from USowned Mondelez International for $460 million.