Campbell Soup Company has announced the sale of its Emerald nuts business to Flagstone Foods, a major player in the private label healthy snacks market in North America. The financial terms of the deal were not disclosed.
Campbell acquired the Emerald nuts business as part of its acquisition of Snyder’s-Lance, Inc. in 2018. In fiscal 2022, the Emerald business generated $66 million in net sales, and for the nine-month period ending April 30, 2023, it generated $46 million. Campbell does not anticipate a significant impact on its financial results for fiscal 2023 from the divestiture. However, the transaction is expected to have a slight dilutive effect on earnings per share of approximately $0.01 in fiscal 2024, mainly due to a transition service agreement and associated costs.
Chris Foley, Executive Vice President and President of Campbell Snacks, stated that the sale of the Emerald business aligns with the company’s strategic focus on driving accelerated growth in its Snacks division and power brands. The transaction was advised by Troutman Pepper Hamilton Sanders LLP and Barclays.
Campbell Soup Company, a renowned name in the food industry for over 150 years, is known for its portfolio of beloved brands and generated $8.6 billion in net sales in fiscal 2022.