Campbell Agrees to Sell Godiva Chocolatier to Yildiz Holding A.S. for $850 Million.CAMDEN Camden, borough, Greater London, England Camden, inner borough (1991 pop. 170,500) of Greater London, SE England. Within the borough, residential Hampstead is popular with writers and artists. , N.J. -- Campbell Soup Company Campbell Soup Company (NYSE: CPB) (also known as Campbell's) is a well-known American producer of canned soups and related products. Campbell's products are sold in 120 countries around the world. It is headquartered in Camden, New Jersey. (NYSE NYSE See: New York Stock Exchange :CPB CPB see cardiopulmonary bypass. CPB Cardiopulmonary bypass. See Port-Access cardiopulmonary bypass. ) today announced it has entered into an agreement to sell its Godiva Chocolatier choc·o·la·tier n. 1. One who makes or sells chocolate. 2. A place where chocolate is made or sold. [French, from chocolat, chocolate, from Spanish chocolate business for $850 million to Yildiz Holding A.S., which is the owner of the Ulker Group, a diversified food company based in Istanbul, Turkey. Godiva will become part of the Ulker Group. The sale price represents a multiple of nearly 15 times EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become . 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 Ulker's portfolio. 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." With sales of U.S. $7.43 billion in 2006, Ulker is the largest consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and company in the Turkish food industry with biscuits, chocolate, confectionery, food and beverages, and dairy businesses. Ulker 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 for Godiva, 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 This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. , and on the internet. Campbell retained Centerview Partners LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control as its financial advisor and Davis Polk & Wardwell as its legal advisor in this matter. Yildiz Holding A.S. retained Standard Unlu and Citi as its financial advisors and Weil, Gotshal & Manges LLP LLP - Lower Layer Protocol as its legal advisor. About Campbell Soup Company Campbell Soup Company is a global manufacturer and marketer of high quality foods and simple meals, including soup, baked snacks, vegetable-based beverages, and premium chocolate products, with annual revenues in excess of $7.8 billion. Founded in 1869, the company has a portfolio of market-leading brands, including "Campbell's," "Pepperidge Farm," "Arnott's," "V8," and "Godiva." For more information on the company, visit Campbell's website at www.campbellsoupcompany.com. Forward-Looking Statements This release contains "forward-looking statements" which reflect the company's expected future business and financial performance, including statements about future plans, strategies, opportunities and objectives of management; statements concerning expected development, market performance or consumption trends of new or reformulated products; statements concerning projections of sales, earnings or volume growth; and statements regarding assumptions underlying any of the foregoing. Forward-looking statements by their nature address matters that are uncertain and are subject to risks. These uncertainties may cause our actual results to vary materially from those expressed or implied in our forward-looking statements. Please refer to the company's most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and subsequent filings for a further discussion of risks. The company disclaims any obligation to update its forward-looking statements. |
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