Campbell Soup has acquired US fruit and vegetable company Bolthouse Farms for $1.55 billion in cash.
The famous soup company acquired Bolthouse Farms from a fund managed by Madison Dearborn Partners LLC, a private equity firm.
Bolthouse was founded in 1915, and is a vertically integrated food and beverage company offering fresh produce – primarily carrots – and vegetable-based premium beverages and a growing presence in refrigerated salad dressings.
The acquisition of the Californian-based company will give Campbell a new platform in packaged fresh foods, and add to Campbell’s V8 beverage business.
Campbell’s is looking to increase its healthy beverage sales to $1.2 billion annually.
“Bolthouse is a great strategic fit with Campbell,” Denise Morrison, Campbell’s president and chief executive said.
“Its business platforms, capabilities and culture are well aligned with the core growth strategies we announced last year.
“Its strong position in the high-growth packaged fresh category complements our chilled soup business in North America, and offers exciting opportunities for expansion into adjacent packaged fresh segments that respond directly to powerful consumer trends.”
Campbell will operate Bolthouse Farms as a separate business unit and Bolthouse’s senior management team, including President and chief executive Jeff Dunn, will remain with the company, reporting directly to Morrison.
The acquisition is expected to be finalised in late August.