Campbell to Sell Godiva To Turkish Company for $850 Million

12/26/2007

The Campbell Soup Company enters into an agreement to sell its Godiva Chocolatier business to Yildiz Holding A.S., the owner of the Ulker Group, a diversified food company based in Istanbul, Turkey. The intended sale -- valued at $850 million -- follows Campbell's announcement in August 2007 that it was exploring strategic alternatives for the business, including a 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.

Godiva has annual sales of approximately $500 million. As one of the world's leading premium chocolate businesses, Godiva's products are sold through company-owned and franchised retail stores, wholesale distribution points, including specialty retailers and finer department stores, and on the Internet.
"The agreement allows Ulker 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, Ulker and Godiva and its employees."
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.