Sweet: Campbell Soup sells Godiva business for $850M

Campbell Soup Company on December 20 announced it has entered into an agreement to sell its Godiva Chocolatier business for $850 million to Yildiz Holding A.S., which is the owner of the Ülker Group, a diversified food company based in Istanbul, Turkey. Godiva will become part of the Ülker Group. The sale price represents a multiple of nearly 15 times EBITDA.

Godiva has annual sales of approximately $500 million.

The agreement is subject to customary closing conditions, including required regulatory approvals. Closing is expected within the next several months. Additional information on the financial impact of the transaction will be released following the completion of the sale.

Douglas R. Conant, Campbell's president and chief executive officer, said, "We are very pleased with the value we obtained for Godiva. The sale price reflects the strength of the Godiva business. Godiva is one of the world's leading premium chocolate businesses and is an excellent strategic fit within Ülker's portfolio. The agreement allows Ülker to expand and diversify its portfolio with an elite, global luxury brand and enables Campbell to sharpen our strategic focus on simple meals, anchored by soup, baked snacks, and vegetable-based beverages. I truly believe we have reached an agreement that benefits all parties-Campbell, Ülker, and Godiva and its employees."

With sales of US$7.43 billion in 2006, Ülker is the largest consumer goods company in the Turkish food industry with biscuits, chocolate, confectionery, food and beverages, and dairy businesses. Ülker also has operations in packaging, industrial products, finance, telecommunications, information technologies and services, real estate, and trade and logistics sectors. The company has more than 25,000 employees worldwide.

In August, Campbell announced it was exploring strategic alternatives, including possible divestiture. At the time, Campbell indicated that Godiva did not fit with its strategic focus on simple meals, baked snacks, and vegetable-based beverages.

One of the world's leading premium chocolate businesses, Godiva products are sold through company-owned and franchised retail stores, wholesale distribution points, including specialty retailers and finer department stores, and on the Internet.