Campbell Soup selling Australian snacks unit for $2.2 billion

Campbell Soup has signed a deal to sell its Australian snacks unit Arnott’s and some of its international operations to KKR for $2.2 billion.

Why it matters: Arnott’s is the biggest single brand in Campbell’s international portfolio, with $737 million in annual revenue.

• It includes popular cookies like Tim Tam.

The bottom line:

"By applying almost $3 billion of divestiture net proceeds to reduce debt, Campbell’s balance sheet will be stronger and capable of supporting our plan to grow our focused and differentiated portfolio."

Details: The two will enter into a long-term licensing agreement for the exclusive rights to use certain Campbell brands, including Campbell’s, Swanson, V8, Prego, Chunky and Campbell’s Real Stock, in certain markets including Australia, New Zealand and Malaysia.