Silver Ventures Inc., the private equity firm run by billionaire Christopher Goldsbury, has agreed to sell Ecce Panis Inc. to Campbell Soup Co. for undisclosed terms.
The target, an artisan bread maker, will be folded into Campbell's Pepperidge Farm division.
Ecce Panis of East Brunswick, N.J., was founded in 1988. It currently has 115 employees and a 113,000-square-foot bakery facility. Campbell does not expect the acquisition to impact its 2009 earnings but expects it to be slightly accretive in 2010.
According to research by investment banking boutique Prestwick Partners LLC, the size of the niche market for artisan breads in the U.S. is about $150 million in annual sales and growing 20% annually, with Ecce Panis one of the four largest companies in the sector. The others are Concept 2 Bakers, La Brea Bakery, a subsidiary of Ireland's IAWS Group plc, and Grace Baking, a subsidiary of Canada's Maple Leaf Foods Inc.
Ecce Panis' previous owner was Phil Columbo, who sold the company earlier this decade.
Campbell and Goldsbury have done deals with each other before. In 1996, Goldsbury sold Pace Salsa Co. to Campbell for $1.1 billion. Goldsbury is believed to maintain stakes in Desert Glory Ltd. and Bay Valley Foods LLC. Silver Ventures sold Discovery Foods LLC to VIP Sales Co. in November 2006 for undisclosed terms.
Calls to the firm were not immediately returned.
Campbell is continuing to focus on its core categories of simple meals (including soup and breads), health beverages and baked snacks.
"One of our seven business strategies is to grow our business through outside partnerships and acquisitions," Campbell spokesman Anthony Sanzio wrote in an e-mail.
The Camden, N.J., food and beverage conglomerate has been taking steps to accomplish the latter. In July, it acquired the Wolfgang Puck Worldwide Inc. soup business from Country Gourmet Foods Inc. for undisclosed terms. About a month later, it sold its Generale Condimentaire sauce business to France's Lesieur International for an undisclosed price.
The company reported $233 million in net earnings for the fiscal quarter ended Feb. 1, compared to $274 million for the same time period one year ago.
"Artisan bread represents one of the fastest growing segments of the bakery category," CEO Douglas Conant said in a statement. "I am confident that we can leverage our sales and marketing capabilities to expand the availability of Ecce Panis products and complement our existing bakery business."
Shares of Campbell closed at $27.43 on Friday, after closing at $27.91 on Thursday, with its market cap around $9.7 billion.
Lincoln International LLC served as Ecce's financial adviser, and Fulbright & Jaworski LLP was its legal counsel.
Davis Polk & Wardwell was Campbell's legal adviser
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