U.S. canned soup producer Campbell Soup Co, struggling a sales slump as consumers seek out more natural products, has agreed to buy Tualatin, Oregon’s company that makes organic soup and broth, Pacific Foods for $700 million.
Campbell Soup said that the acquisition allows the company to expand into faster-growing space such as organic and functional food. The Tualatin, Oregon-based maker of organic foods generated revenue of $218 million over the last year.
Campbell, the nearly 150-year-old company known for canned goods, has struggled with changing consumer taste and is expected to post declining sales for a third consecutive year. The Camden, New Jersey-based company has stumbled with moves into carrot farming and protein drink production since its 2012 purchase of Bolthouse Farms.
Campbell acquired Bolthouse- a producer of carrots, juice and salad dressings-in 2012 for $1.55 billion.