Organic consolidation continues
The Organic consolidation trend continued, with this latest news that CPB announced today, that it has entered into a definitive agreement to acquire Garden Fresh Gourmet for $231mm. This is now Campbell’s third acquisition in three years focused on the healthy consumer, first with Bolthouse Farms (2012), then Plum (2013) and now Garden Fresh Gourmet.
Campbell’s expects the transaction not to affect FY2015 as it ends on July 31, and to be slightly accretive beginning in FY2016. This continues to help extend CPB into the perimeter aisles and beyond the center-of-store.
In a move that has become popular amongst large traditional food manufacturers when acquiring a smaller competitor, Garden Fresh Gourmet will be operated from their HQ in Ferndale, MI. Founder and CEO Jack Aronson will stay on board as an advisor to the business.
This acquisition will do little to reshape the company’s struggling portfolio of brands.
Below is a one page summary of the Campbell’s Garden Fresh Gourmet deal: