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Latest organic play by Campbell Soup on the pricey side

Published 07/07/2017, 12:13 PM
© Reuters.  Latest organic play by Campbell Soup on the pricey side
CPB
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  • Campbell Soup (CPB +0.4%) is mildly higher after its splashy acquisition of organic-focused Pacific Foods for $700M.
  • Bloomberg's Brooke Sutherland notes that the company's past pickups of Bolthouse Farms and Garden Fresh Gourmet weren't entirely smooth, but also sees some upside.
  • "Campbell should have an easier time marketing and distributing Pacific's organic soup. Demand seems healthy; fresh soup has been one of the bright spots for Campbell's revenue this year," she writes.
  • Campbell overpaid for Pacific Foods based on the median revenue multiple for food sector acquisitions over the last five years (3.2X vs. <1.0).
  • Previously: Campbell Soup acquires Pacific Foods (July 6)
  • Previously: Food sector on watch after Campbell Soup goes shopping (July 7)
  • Now read: Campbell Soup - Suffering From Transition Struggles


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