Campbell plans to sell 2 food units
BOSTON/CHICAGO: Campbell Soup Co said yesterday it plans to sell its international and fresh refrigerated-foods units and left open the possibility of putting the whole company up for sale, following a months-long review and pressure from hedge fund investors.
It is not clear if the plan will appease activist investor Dan Loeb, whose Third Point LLC hedge fund announced a 5.65 per cent stake on August 9 and immediately pressed for a sale of the company to a competitor as “the only justifiable outcome”.
Loeb could escalate his attack and nominate a slate of directors within the next few weeks to be voted on at Campbell’s annual meeting later this year, said
sources earlier this week.
Shares of Campbell, which has a market value of about US$12 billion, fell four per cent in premarket
trading.
Retreating from smaller international and fresh-food businesses marks a change from the strategy of former chief executive officer (CEO) Denise Morrison, who wanted Campbell to have a diverse portfolio with a focus on health and well-being.
The two businesses put up for sale currently bring in about US$2.1 billion in annual sales, about a quarter of Campbell’s overall revenue.
Campbell International includes Australian biscuits brand Arnott’s and the Kelsen Group, along with the company’s manufacturing operations in Indonesia and Malaysia and its businesses in Hong Kong and Japan.