Camden, NJ—Campbell Soup Co. will sell its Bolthouse Farms business to an affiliate of private equity firm Butterfly Equity for $510 million, according to Reuters.
The deal is expected to be completed by July 2019, Reuters reports, which will mark Campbell’s complete divestiture of its fresh division. Butterfly’s operating partner Jeff Dunn, who has previously served as president and CEO of Bolthouse between 2008 and 2015, will take over as CEO.
Campbell bought Bolthouse in 2012 for $1.55 billion, but the business has struggled recently, according to Reuters, with issues including the recall of 3.8 million bottles of protein shakes due to possible spoilage. The proceeds from the deal will help reduce debt by about $570 million, and the transaction is not expected to impact the company’s fiscal 2019 forecast.
Reuters quoted Mark Clouse, CEO of Campbell, as saying: “The sale of Bolthouse Farms supports our strategy to focus on our two core North American businesses, Campbell Snacks and Campbell Meals and Beverages.”