Campbell Soup Company has announced the sale of its Emerald nuts business to Flagstone Foods for an undisclosed sum.
Flagstone Foods is one of the largest manufacturers and distributors of private-label snacks in North America.
Chris Foley, executive vice president and president of Campbell Snacks said, "The sale of the Emerald business is part of our ongoing strategic process to create even greater focus on driving accelerated growth across our snacks division and power brands."
In 2018, Campbell acquired the Emerald nuts business as part of the Snyder’s-Lance, Inc. acquisition.
Emerald Nuts Business
The Emerald Nuts business generated net sales of $66 million (€61.7 million) in fiscal 2022 and $46 million (€43 million) for the nine months ended 30 April 2023, Campbell said.
The company does not expect the divestiture to have a material impact on its fiscal 2023 results.
The transaction is expected to be dilutive to earnings per share by approximately $0.01 in the company's 2024 financial year, reflecting the timing of a transition service agreement and cost actions.
Troutman Pepper Hamilton Sanders LLP and Barclays acted as exclusive advisors to Campbell on this transaction.
Sales Forecast
In March, Campbell Soup raised its annual sales forecast betting on higher prices, improved supply and strong demand for its packaged meals and snacks.
The company's net sales rose to $2.49 billion (€2.33 billion) in the quarter ended 29 January, from $2.21 billion a year earlier, compared to analysts' average estimate of $2.44 billion in Refinitiv IBES data.
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