Campbell’s Completes Sale of noosa Business to Lakeview Farms

Rhea-AI Summary

Campbell's (NASDAQ:CPB) has completed the sale of noosa yoghurt business to Lakeview Farms, Following the transaction, Lakeview Farms and noosa will merge to form Novus Foods. The financial terms of the deal were not disclosed. The divestiture is expected to have a dilutive impact of approximately $0.01 on Campbell's earnings per share in fiscal 2025. Campbell's had initially acquired noosa yoghurt as part of its Sovos Brands acquisition in March 2024.

Positive

• None.

Negative

• Dilutive impact of $0.01 on earnings per share expected in fiscal 2025

Insights

Financial Analyst

This strategic divestiture of noosa yoghurt to Lakeview Farms, forming the new entity Novus Foods, reveals Campbell's surgical approach to portfolio optimization. The minimal earnings impact of -$0.01 EPS for fiscal 2025 suggests this was a calculated move to streamline operations rather than a financially driven decision.

The swift execution of this sale, mere months after acquiring noosa through the Sovos Brands deal, demonstrates Campbell's clear vision for its portfolio composition. This rapid turnaround indicates the company likely identified noosa as a non-core asset during the initial Sovos acquisition due diligence, planning its divestiture from the outset.

The formation of Novus Foods through this transaction signals ongoing consolidation in the specialty foods sector. For Lakeview Farms, acquiring noosa complements their existing fresh dips and specialty products portfolio, potentially creating operational synergies and strengthening their market position in the premium dairy category.

For Campbell's, this divestiture aligns with their strategy of focusing on core brands and categories where they maintain strong market positions. The minimal earnings dilution suggests the company effectively managed the transaction's timing and terms to optimize shareholder value while executing their portfolio rationalization strategy.

CAMDEN, N.J.--(BUSINESS WIRE)-- The Campbell’s Company (NASDAQ:CPB) (Campbell’s) today announced it has completed the sale of the noosa yoghurt business to Lakeview Farms, LLC, a manufacturer of fresh dips, desserts and specialty products. Terms of the transaction were not disclosed. Lakeview Farms and noosa will combine and now be known as Novus Foods.

As stated when the sale agreement was announced in Nov. 2024, Campbell’s expects the divestiture to be dilutive to earnings per share by approximately $0.01 in fiscal 2025.

Campbell’s purchased the noosa yoghurt business as part of the Sovos Brands, Inc. acquisition in March 2024.

About The Campbell’s Company

For 155 years, The Campbell’s Company (NASDAQ:CPB) has been connecting people through food they love. Headquartered in Camden, N.J. since 1869, generations of consumers have trusted us to provide delicious and affordable food and beverages. Today, the company is a North American focused brand powerhouse, generating fiscal 2024 net sales of $9.6 billion across two divisions: Meals & Beverages and Snacks. Our portfolio of 16 leadership brands includes: Campbell’s, Cape Cod, Chunky, Goldfish, Kettle Brand, Lance, Late July, Pace, Pacific Foods, Pepperidge Farm, Prego, Rao’s, Snack Factory, Snyder’s of Hanover, Swanson and V8. For more information, visit www.thecampbellscompany.com.

Forward Looking Statements

This press release includes certain forward-looking statements within the meaning of U.S. federal securities laws. These forward-looking statements are based on management's current expectations and assumptions. The forward-looking statements, including statements concerning our current expectations about the transaction, are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. We do not undertake any obligation to update or revise these forward-looking statements to reflect new events or circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250224458508/en/

Investors:

Rebecca Gardy

(856) 342-6081

Rebecca_Gardy@campbells.com



Media:

James Regan

(856) 219-6409

James_Regan@campbells.com

Source: The Campbell’s Company

FAQ

What impact will the noosa yoghurt sale have on Campbell's (CPB) earnings in 2025?

The sale of noosa yoghurt is expected to be dilutive to Campbell's earnings per share by approximately $0.01 in fiscal 2025.

Who acquired Campbell's (CPB) noosa yoghurt business?

Lakeview Farms, , a manufacturer of fresh dips, desserts and specialty products, acquired Campbell's noosa yoghurt business.

What will be the new name of the combined Lakeview Farms and noosa business?

The combined entity of Lakeview Farms and noosa will be known as Novus Foods.

When did Campbell's (CPB) originally acquire the noosa yoghurt business?

Campbell's acquired noosa yoghurt as part of the Sovos Brands acquisition in March 2024.