UPDATE 1-Campbell Soup to buy organic baby food company
May 23 (Reuters) - Campbell Soup Co said on Thursday it had agreed to buy organic baby food maker Plum Organics, as the company behind Goldfish crackers and Campbell's Soup seeks to expand its offerings to the youngest consumers.
The acquisition, whose terms were not disclosed, marks the third deal this month by a large packaged food maker for a small baby-food company after Hain Celestial Group agreed to buy Ella's Kitchen and Danone agreed to buy Happy Family.
Plum sells squeeze pouches of organic baby food in unique combinations like raspberry, spinach and Greek yogurt. Chief Executive Officer Denise Morrison told Reuters that the company fits in with its other products targeting kids, including Pepperidge Farm Goldfish crackers.
Campbell is working to improve its sales of soups while also expanding into higher-growth areas. It recently bought Bolthouse Farms, which produces baby carrots and refrigerated juices.
Plum has annual sales of about $93 million.
Campbell expects the deal to close in the fourth quarter and not impact its full-year targets.
Plum was advised by Houlihan Lokey and Jones Day and Campbell was advised by Davis Polk & Wardwell.
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