KKR pays US$2.2 billion for Tim Tam maker Arnott’s as Campbell Soup retreats to focus on core North American market
- Transaction includes Arnott’s, other parts of Campbell Soup’s international business
- Latest in a series of consumer sector investments by private equity giant
Kohlberg Kravis Roberts (KKR) said on Friday that it had agreed to acquire Arnott’s, the Australian maker of Tim Tam chocolate biscuits, and other Asia-Pacific operations of Campbell Soup Company in its latest bet on the consumer market.
The stocks and asset purchase agreement valued those businesses at US$2.2 billion, the private equity giant said.
“Campbell International represents a unique portfolio of iconic brands that are known and loved by consumers in Australia and across the world,” David Lang, a KKR member in Australia, said. “We are privileged and excited to have the opportunity to invest in and grow Arnott’s as an independent business in Australia, in addition to further developing Campbell’s trusted brands across the broader Asian market.”
The deal is expected to be completed within six months, subject to customary closing conditions.
Most sales of Campbell International’s sales come from Arnott’s, which Campbell acquired in 1997. Arnott’s is one of Australia’s most well-known brands, making sweet and savoury biscuits, including Shapes, Tim Tam and Vita-Weat.
Campbell International also has a regional portfolio of Campbell soup, stock, juice and ready meal brands in Australia, Hong Kong, Indonesia, Japan, Malaysia, New Zealand and Singapore.