US food group Campbell Soup will consider selling its British and Irish dry soup, sauces and stock cubes business in a reversal of its expansion over the last 11 years, it said yesterday.
Campbell said that the businesses had annual sales of about $490 million (€407 million) and that they included brands such as Batchelors powdered soups and meals, Homepride sauces, and Fray Bentos meat products.
Analysts have put a price tag of about $750 million on the whole business.
Among the Irish companies that might take an interest in the businesses are Jacob Fruitfield, Barrys Tea and Shamrock Foods.
Several international food companies have reduced their presence in the Irish market over the last few years, including Danone.
The New Jersey-based company said in a statement it would explore options such as divestitures in the UK and the Republic after a review of its international business.
"Our portfolio in the UK and Ireland includes some strong brands, but it is highly fragmented and has not met our company's growth expectations," president and chief executive Douglas R Conant said in a statement.
"It is time to explore strategic alternatives as we strive to optimise the value of these businesses to our shareowners.
"We remain committed to pursuing the best opportunities for profitable growth in international markets as well as in North America."
Analysts said the UK businesses were likely to interest Branston Pickle and Bird's custard maker Premier Foods or Hovis bread and Mr Kipling Cake group RHM.
The Erin dry soups and sauces business in Ireland may interest Irish food groups.
The move reflects one by US food group HJ Heinz, which has sold its European canned fish and frozen vegetable businesses and has its European frozen ready-meals unit up for sale with a price tag of about £150 million sterling (€217 million).
Campbell bought the Homepride business from now defunct Dalgety for £58.6 million in 1995.
The US group then bought Unilever's Batchelors and Oxo European soups and sauces business for about €1 billion in 2001 to ease regulatory concerns after Unilever acquired Bestfoods in 2000 for $24.3 billion.
Campbell said it had retained Goldman Sachs as its adviser.
