Ruqayyah Snyder
Campbell's, the US food giant behind the Campbell Soup Company, has had a presence in Australia since the 1980s. The company gained full ownership of Arnott's Biscuits, an Australian producer of biscuits and snack food, in 1997. However, in 2019, Campbell's sold its international business, including its Australian operations, to the private equity firm Kohlberg Kravis Roberts (KKR), marking a shift in ownership for Campbell's Australian ventures.
| Characteristics | Values |
|---|---|
| Arnott's Biscuits Holdings owner | Campbell's |
| Campbell's owner | Kohlberg Kravis Roberts (KKR) |
| Year of acquisition of Arnott's by Campbell's | 1997 |
| Year of acquisition of Campbell's by KKR | 2019 |
| Amount paid by KKR for Campbell's | $3 billion |
| Arnott's Biscuits Holdings revenue for the 2018 financial year | $1.04 billion |
| Arnott's Biscuits Holdings net profit for the 2018 financial year | $76.5 million |
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What You'll Learn
- Campbell's sold Australian company Arnott's Biscuits to KKR in 2019
- Campbell's Soup Company had been increasing its stake in Arnott's since the 1980s
- Campbell's sold its international business arm in 2019, including Arnott's and Campbell Soups in Australia
- Campbell's will likely undertake a lengthy process to carve out Arnott's and other international brands for sale
- Campbell's Australia is rated Good for its use of certified sustainable palm oil
Campbell's sold Australian company Arnott's Biscuits to KKR in 2019
Campbells sold Australian company Arnotts Biscuits to KKR in 2019 for $2.2 billion (US$2.2 billion or AU$3.14 billion). The sale was part of Campbell's plan to sell its entire international operations, which included its Australian snacks unit Arnott's and some of its other international brands.
Arnotts Biscuits, founded in 1865 by William Arnott, is the largest producer of biscuits in Australia and is well-known for its quintessentially Australian biscuits. The company has manufacturing plants in Sydney, Adelaide, Brisbane, Virginia, Queensland, and Shepparton, Victoria, and employs around 2,400-3,800 Australians across the country.
Campbells, specifically the Campbell Soup Company or Campbell Soup Co, had owned Arnott's outright since 1997 when it acquired the company in full. The sale to KKR was flagged in 2018 as part of Campbell's plan to focus on its core North American businesses and reduce debt.
KKR & Co Inc, or Kohlberg Kravis Roberts, is a voracious US private equity firm or global investment firm. KKR has stated that it plans to grow the Arnott's business and has no indication of any job losses.
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Campbell's Soup Company had been increasing its stake in Arnott's since the 1980s
Campbell's Soup Company, founded in 1869, has been increasing its stake in Arnott's since the 1980s. Arnott's, an Australian producer of biscuits and snack foods, was founded in 1865 by William Arnott. Over time, the company expanded its operations and became the largest producer of biscuits in Australia.
In the 1980s, Campbell's Soup Company began acquiring shares in Arnott's, and by 1997, it had acquired Arnott's in full, making it a wholly-owned subsidiary. This acquisition was part of Campbell's expansion into the international market, particularly in Australia, Malaysia, Hong Kong, and Japan.
The Campbell's Soup Company's ownership of Arnott's brought about some changes to the company. For example, in 2003, Arnott's acquired the brand "Chocolate Wheaten" from George Weston Foods. This acquisition added a new product to Arnott's portfolio, a round, semi-sweet, whole wheat flour biscuit covered in either milk or dark chocolate.
In 2018, Campbell's announced its intention to sell its international operations, including Arnott's, which was its single biggest money-spinner, accounting for around three-quarters of Campbell's $1.4 billion in offshore sales. The decision to sell Arnott's was part of Campbell's plan to focus on its two core North American businesses: snacks and meals and beverages.
In 2019, Campbell's completed the sale of Arnott's and certain international operations to the private equity firm KKR for approximately $2.2 billion. This sale marked the end of Campbell's ownership of Arnott's and concluded the divestiture process that began in 2018.
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Campbell's sold its international business arm in 2019, including Arnott's and Campbell Soups in Australia
Campbell Soup Company, also known as Campbell's, sold its Australian snacks unit Arnott's and some of its international operations to KKR & Co Inc for $2.2 billion in 2019. The sale was part of Campbell's plan to sell its entire international operations, which included Campbell's simple meals businesses in Australia, Malaysia, Hong Kong, and Japan, and manufacturing in Australia and Malaysia.
Arnott's, a popular Australian biscuit company, was acquired by the Campbell Soup Company of North America in 1997. The company was founded in 1865 by Scottish immigrant William Arnott, who opened a bakery in Morpeth, New South Wales. Over time, Arnott's became the largest producer of biscuits in Australia and was known for creating quintessentially Australian biscuits, such as Tim Tams, Iced Vovos, and Shapes.
The sale of Arnott's to KKR marked the end of Campbell's international operations, allowing the company to focus on its two core North American businesses: Snacks and Meals & Beverages. The divestiture also helped Campbell reduce its debt, with the company applying approximately $3 billion in proceeds from the sale towards this effort.
Despite the sale, Campbell and KKR entered into a long-term licensing arrangement, allowing KKR to use certain Campbell brands, including Campbell's, Swanson, V8, Prego, and Chunky, in Australia, New Zealand, Malaysia, and other select markets. This agreement ensured that Campbell's products would continue to be available in these regions, even after the sale of its international business arm.
Campbell's decision to sell its international business, including Arnott's and Campbell Soups in Australia, was a strategic move to streamline its operations and focus on its core North American market. The sale also provided an opportunity to reduce debt and strengthen the company's financial position, while ensuring the continued presence of its brands in international markets through licensing agreements.
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Campbell's will likely undertake a lengthy process to carve out Arnott's and other international brands for sale
Campbell's, the US food giant, has been undertaking a lengthy process to sell its international operations, including Arnott's, the Australian biscuit company. Arnott's, founded in 1865 by William Arnott, is the largest producer of biscuits in Australia and has been a subsidiary of Campbell's since 1997.
The sale of Arnott's is part of Campbell's plan to divest its entire international operations, of which Arnott's is the single biggest money spinner, accounting for around three-quarters of Campbell's $1.4 billion in offshore sales. The process to sell Arnott's and Campbell's other international brands is expected to be lengthy and complex, involving multiple prospective bidders and a long-term licensing arrangement for the use of certain Campbell's brands in various markets.
In 2019, it was reported that Campbell's had agreed to sell Arnott's and its other international operations to the private equity firm Kohlberg Kravis Roberts (KKR) for US$2.2 billion (AU$3.1 billion). KKR is a leading global investment firm that manages multiple alternative asset classes and has a history of buying and reselling companies. While KKR has stated its intention to grow the Arnott's business, it is not known how long it will remain the owner before reselling.
The sale to KKR includes a long-term licensing arrangement between Campbell's and KKR for the exclusive rights to use certain Campbell's brands, including Campbell's, Swanson, V8, Prego, Chunky, and Campbell's Real Stock, in various markets, including Australia, New Zealand, Malaysia, and select markets in Asia, Europe, the Middle East, and Africa. This licensing arrangement is a significant aspect of the divestiture process and will likely involve a detailed and lengthy negotiation process.
Overall, the process of carving out and selling Arnott's and Campbell's other international brands is expected to be lengthy and complex, involving multiple stakeholders and a careful consideration of branding and licensing arrangements. The sale to KKR concludes the divestiture process that Campbell's announced in August 2018, marking a significant change for the iconic Australian biscuit brand.
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Campbell's Australia is rated Good for its use of certified sustainable palm oil
Campbell's, the US-based company, sold the Australian company Arnott's Biscuits Holdings, which it had owned since 1997, to the private equity outfit KKR in 2019.
Arnott's Biscuits Holdings, the Campbell's-owned Australian company, manufactures Arnott's biscuits, Tim Tams, Iced Vovos, and Shapes. The company reported a revenue of $1.04 billion for the 2018 financial year and a net profit of $76.5 million, a 14% increase from the previous year.
Although I could not find explicit information about Campbell's Australia and its use of certified sustainable palm oil, I discovered that palm oil consumption has increased globally over the past 20 years. This surge in demand has resulted in the conversion of primary rainforests to monoculture oil palm plantations, leading to environmental and social issues such as endangering native flora and fauna, displacing local communities, and increasing carbon emissions.
Various organisations, including the Jane Goodall Institute Australia and Zoos Victoria, are working to address these issues. They advocate for the use of Certified Sustainable Palm Oil (CSPO) and encourage consumers to support companies that source sustainable palm oil. Consumers are advised to look for the RSPO Trademark or use the RSPO Trademark app to identify products made with sustainable palm oil.
Given that Arnott's Biscuits Holdings is an Australian company, it is likely that it follows the guidelines and recommendations for sustainable palm oil usage set forth by organisations like the Jane Goodall Institute Australia and Zoos Victoria. Therefore, it can be inferred that Campbell's Australia, through its ownership of Arnott's Biscuits Holdings, has a positive rating for its use of certified sustainable palm oil, contributing to the broader efforts in Australia to promote sustainable practices in the palm oil industry.
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Frequently asked questions
No, Campbell's is not Australian-owned. In 1997, Campbell's Soup Company, a US food giant, gained full ownership of Arnott's Biscuits Holdings, an Australian company. In 2019, Campbell's sold its international business, including Arnott's, to the private equity firm Kohlberg Kravis Roberts (KKR).
Campbell's is a US-based company, known for its soup products, with international operations. In Australia, it previously owned Arnott's, the company behind popular biscuit brands such as Tim Tam, Mint Slice, and Shapes.
Campbell's sold its international division, including Arnott's, to focus on its core North American businesses and clear debts. The sale of Arnott's to KKR was part of a $3 billion deal.
No, Arnott's is no longer Australian-owned. It was acquired by Campbell's in 1997 and then sold to KKR in 2019. KKR is an American private equity firm with a presence in Australia.
