Campbell Soup to sell Bolthouse Farms for $510 million

Campbell Soup Co. soup cans as well as Bolthouse Farms juices are arranged for a photograph in Washington, D.C.

Andrew Harrer | Bloomberg | Getty Images

Campbell Soup Co. soup cans as well as Bolthouse Farms juices are arranged for a photograph in Washington, D.C.

Campbell Soup said on Friday the idea would certainly sell its Bolthouse Farms business to an affiliate of private equity firm Butterfly Equity for $510 million, inside the U.S. food company’s first major sale as part of its plan to reduce debt.

With the completion of deal, expected by July 2019, Campbell will have divested its entire fresh division, the idea said. In February, the idea agreed to sell salsa maker Garden Fresh Gourmet to a unit of Fountain of Health USA, which makes hummus, dips as well as prepared salads.

Butterfly said its operating partner Jeff Dunn will take the role of chief executive officer at Bolthouse Farms, where he previously served as president as well as CEO between 2008 as well as 2015.

Campbell bought Bolthouse, known for its fruit juices as well as packaged carrots, in 2012 for about $1.55 billion in a push to add healthier products to its portfolio.

The business, however, has struggled in recent years, with issues ranging coming from farming missteps to the recall of 3.8 million bottles of protein shakes due to possible spoilage.

The fresh food unit along with Campbell’s international business, has been up for sale since August after the company was pressured by investors to boost its profitability as well as stock performance.

“The sale of Bolthouse Farms supports our strategy to focus on our two core North American businesses, Campbell Snacks as well as Campbell Meals as well as Beverages,” CEO Mark Clouse said.

The packaged foods maker said the proceeds coming from deal would certainly help reduce debt by about $570 million as well as which the transaction can be not anticipated to impact the company’s fiscal 2019 forecast.