USA – Campbell Soup Co. has sold its Pop Secret popcorn business to US snacks manufacturer Our Home for an undisclosed amount.
The deal marks a significant step in Campbell’s journey to focus on its core brands and drive accelerated growth in its snacks division.
According to Campbell, the Pop Secret business generated net sales of approximately US$120 million in fiscal 2024.
Chris Foley, Executive Vice President and President of Campbell’s Snacks stated, “This marks another step in our journey to focus our Snacks portfolio strategically.
‘’The sale of Pop Secret will drive greater focus and accelerated growth across our Snacks division and portfolio of leading brands.”
For Our Home, the acquisition of Pop Secret represents an expansion into the microwave popcorn category, strengthening its position as a premier independent snacking platform.
Aaron Greenwald, Founder and CEO of Our Home, said, “Acquiring Pop Secret marks Our Home’s expansion into the microwave popcorn category, strengthening our status as a premier independent snacking platform.
‘’The brand’s significant MULO consumption and widespread household recognition, combined with our extensive manufacturing capabilities, create a unique platform for growth and innovation in the market.”
The transaction is expected to dilute Campbell’s fiscal 2025 earnings per share by approximately US$0.04, reflecting the timing of a transition service agreement and cost actions.
BofA Securities acted as the exclusive financial advisor, while Blank Rome served as legal counsel to Campbell on the transaction.
This sale is part of Campbell’s broader strategy to refine its product offerings and respond to evolving consumer trends, particularly in the health-conscious segment of the food industry.
In March 2024, Campbell announced the acquisition of Sovos Brands for approximately US$2.7 billion, adding a “high-growth, market-leading premium portfolio” of brands to its meals and beverages division.
Matthew Smith, an analyst at Stifel who covers Campbell, noted that Pop Secret accounted for 1% of Campbell’s overall sales and 3% of the revenue for its snacks division.
He believes the divestiture is a positive move for Campbell, focusing the snacks portfolio with minimal financial impact.
The sale of Pop Secret to Our Home aligns with Campbell’s strategic initiative to streamline its snacks portfolio.
This will enable the company to concentrate on its core brands and drive growth within its remaining product lines.
As packaged food companies continue to manage their portfolios to improve growth outlooks actively, this transaction positions Campbell for continued success in the snacking market.
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