CAMDEN, N.J.–(BUSINESS WIRE)–Dec. 20, 2007–Campbell Soup Company (NYSE:CPB) today announced it has entered into an agreement to sell its Godiva Chocolatier business for $850 million to Yildiz Holding A.S., which is the owner of the Ulker Group, a diversified food company based in Istanbul, Turkey. Godiva will become part of the Ulker Group. The sale price represents a multiple of nearly 15 times EBITDA.
Godiva has annual sales of approximately $500 million.
The agreement is subject to customary closing conditions, including required regulatory approvals. Closing is expected within the next several months. Additional information on the financial impact of the transaction will be released following the completion of the sale.
Douglas R. Conant, Campbell’s President and Chief Executive Officer, said, “We are very pleased with the value we obtained for Godiva. The sale price reflects the strength of the Godiva business. Godiva is one of the world’s leading premium chocolate businesses and is an excellent strategic fit within Ulker’s portfolio. The agreement allows Ulker to expand and diversify its portfolio with an elite, global luxury brand and enables Campbell to sharpen our strategic focus on simple meals, anchored by soup, baked snacks, and vegetable-based beverages. I truly believe we have reached an agreement that benefits all parties–Campbell, Ulker, and Godiva and its employees.”
With sales of U.S. $7.43 billion in 2006, Ulker is the largest consumer goods company in the Turkish food industry with biscuits, chocolate, confectionery, food and beverages, and dairy businesses. Ulker also has operations in packaging, industrial products, finance, telecommunications, information technologies and services, real estate, and trade and logistics sectors. The company has more than 25,000 employees worldwide.
In August, Campbell announced it was exploring strategic alternatives for Godiva, including possible divestiture. At the time, Campbell indicated that Godiva did not fit with its strategic focus on simple meals, baked snacks, and vegetable-based beverages.
One of the world’s leading premium chocolate businesses, Godiva products are sold through company-owned and franchised retail stores, wholesale distribution points, including specialty retailers and finer department stores, and on the internet.
Campbell retained Centerview Partners LLC as its financial advisor and Davis Polk & Wardwell as its legal advisor in this matter. Yildiz Holding A.S. retained Standard Unlu and Citi as its financial advisors and Weil, Gotshal & Manges LLP as its legal advisor.
About Campbell Soup Company
Campbell Soup Company is a global manufacturer and marketer of high quality foods and simple meals, including soup, baked snacks, vegetable-based beverages, and premium chocolate products, with annual revenues in excess of $7.8 billion. Founded in 1869, the company has a portfolio of market-leading brands, including “Campbell’s,” “Pepperidge Farm,” “Arnott’s,” “V8,” and “Godiva.” For more information on the company, visit Campbell’s website at www.thecampbellscompany.com.
Forward-Looking Statements
This release contains “forward-looking statements” which reflect the company’s expected future business and financial performance, including statements about future plans, strategies, opportunities and objectives of management; statements concerning expected development, market performance or consumption trends of new or reformulated products; statements concerning projections of sales, earnings or volume growth; and statements regarding assumptions underlying any of the foregoing. Forward-looking statements by their nature address matters that are uncertain and are subject to risks. These uncertainties may cause our actual results to vary materially from those expressed or implied in our forward-looking statements. Please refer to the company’s most recent Form 10-K and subsequent filings for a further discussion of risks. The company disclaims any obligation to update its forward-looking statements.
CONTACT: Campbell Soup Company Anthony Sanzio (Media) 856-968-4390 or Leonard F. Griehs (Analysts) 856-342-6428 SOURCE: Campbell Soup Company