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Branded food company $CPB has signed an agreement to acquire $LNCE for $50 per share in an all-cash transaction, significantly expanding its snacking division. The transaction is anticipated to close in early 2018, and is expected to be accretive to non-GAAP EPS in fiscal 2019. Campbell plans to finance the transaction through $6.2Bil of debt.
$CPB completed the acquisition of Pacific Foods of Oregon for $700MM in cash. $CPB expects the acquisition to be approx. $0.05 per share dilutive to its FY18 earnings. $CPB expects that Pacific Foods will contribute approx. $100MM in net sales in FY18. $CPB named Joe Folds as VP and General Manager, Pacific Foods.
$CPB said its soup sales in 1Q18 were hurt by severe weather conditions, which delayed carrot harvest in California. The company, which also owns Bolthouse Farms beverage company, added that the production delays led to an unanticipated increase in supply-chain costs during the quarter.
Soup company $CPB reported 2% decline in net and organic sales to $2.16Bil in 1Q18. Net income fell to $275MM, or $0.91 per share, compared to $292MM, or $0.94 per share a year ago, partly due to higher raw material and transportation costs. Adjusted for special items, net earnings fell 8% to $0.92 per share during the quarter.
$CPB agreed to acquire Pacific Foods of Oregon in July. On Aug. 21, 2017, the estate of a former Pacific Foods shareholder, Edward C. Lynch, filed a lawsuit against Pacific Foods seeking more than $250MM in damages. This lawsuit creates an impediment to closing the deal. $CPB has given Pacific Foods 60 days to resolve this issue.
$CPB appointed Shakeel Farooque as new VP and Head of Digital and E-Commerce. $CPB plans to accelerate its digital and e-Commerce capabilities by forming an e-Commerce unit representing all three Campbell divisions in North America, which Farooque will lead. $CPB has a goal of generating $300MM in e-Commerce sales over the next five years.
$CPB appointed Shakeel Farooque to newly created role of VP and Head of Digital and E-Commerce. $CPB plans to accelerate its digital and e-Commerce capabilities by forming an e-Commerce unit representing all three Campbell divisions in North Americawhich Farooque will lead. $CPB has goal of generating $300MM in e-Commerce sales over next 5 years.