Campbell is in talks to sell its fresh foods business to investors led by Bolthouse Farm's former CEO, Jeff Dunn, according to people familiar with the discussions, reports The Wall Street Journal. Dunn helped a private equity firm sell Bolthouse to Campbell six years ago for $1.6 billion, and subsequently co-founded, and remains an investor in, Campbell's venture-capital fund, Acre Venture Partners. He had also served as president of Campbell's fresh food unit.
The news comes as Campbell faces increasing pressure from activist investor Daniel Loeb and his hedge fund Third Point, which is ramping up its campaign to replace Campbell's board of directors. Campbell issued a press release urging shareholders to back its board, and said that it "strongly objects to Third Point's aggressive and short-sighted tactics."
Campbell's fresh food business, which includes Bolthouse fresh carrots and refrigerated juices as well as Garden Fresh salsa and other products, has struggled with supply-chain issues. In recent years, Bolthouse's sales and operating profit plunged, and Campbell in August said it intended to sell the fresh foods unit following a strategic review. Sources claim it could sell for between $500 million and $700 million, according to the report. Full Story (WSJ Subscription Required)
Related: Campbell to Divest Fresh, International Businesses; Campbell Soup Closing Toronto Plant.
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