April 15, 2019

Campbell Soup announced it has reached an agreement to sell Boltlhouse Farms to an affiliate of Los Angeles-based, food-focused private equity firm Butterfly Equity for $510 million.

Headquartered in Bakersfield and Santa Monica, California, Bolthouse operates facilities in Hodgkins, Illinois, Wheatley, Ontario, and Prosser, Washington, and employs 2,200 employees.

Under the structure of the deal, Jeff Dunn, the former CEO of the brand, is leading an investor group working with Butterfly Equity to acquire the beleaguered maker of carrots, smoothies, juices, and dressings bought by Campbell Soup in 2012 for $1.55 billion.

Once the deal for Bolthouse is closed by the end of fiscal year 2019, the sale will mark the full divestiture of Campbell’s Campbell Fresh Division. This is following the sale of Garden Fresh Gourmet, a maker of salsa, hummus, dips, and prepared salads, in February of this year to an affiliate of Fountain of Health USA, and its sale of its refrigerated soup plant located in Everett, Washington.

After seven years of ownership, a product recall, and having written down its Fresh Division four times since 2016, the divestiture will free up Campbell Soup to streamline its focus on its more profitable Campbell Meals and Beverages and Campbell Snacks division.

In December 2017, Campbell took a bold step into the snack category, making its biggest acquisition in company history, paying $4.87 billion in cash for leading snack company Snyder’s-Lance.

“This acquisition will dramatically transform Campbell, shifting our center of gravity and further diversifying our portfolio into the faster-growing snacking category,” said Morrison, former president and CEO, Campbell’s Soup.

Now, new Campbell Soup President and CEO Mark Clouse, who has filled leadership positions at such iconic companies as Mondelez, Kraft Foods, and most recently, Pinnacle Foods – and who assumed the helm of Campbell Soup only in January – can focus on a streamlined business that is in the position to reduce debt by $570 million.

“The sale of Bolthouse Farms supports our strategy to focus on our two core North American businesses, Campbell Snacks and Campbell Meals and Beverages, where we have iconic brands and strong market positions,” noted Clouse.

“I am honored to lead Campbell and its portfolio of iconic brands into the next chapter of the company’s storied history,” said Clouse upon his appointment. “I am committed to delivering Campbell’s strategic objectives and look forward to partnering with the Board and working alongside the company’s many talented employees to deliver sustainable, long-term growth. I am confident that together we can build a prosperous future for Campbell and all of its stakeholders.”

-Lynda Kiernan