Campbell Soup Co. Spinning Off Fayetteville Plant?

The announcement last month that Campbell Soup Co. will spin off seven businesses may mean a new name for the company’s plant in Fayetteville by mid-1998.

Dale Morrison, the new CEO at Campbell, announced the company would be spinning off seven businesses that generate $1.4 billion in annual sales, nearly one-fifth of the company’s total revenues.

The companies being spun off include Campbell’s Swanson frozen foods division. The plant in Fayetteville is one of those that makes the Swanson meals.

The spin off will probably mean the Swanson division will be a free-standing company by mid-1998 and the name of the Fayetteville plant will change, says an industry analyst.

Although Campbell Soup will no longer oversee the operation of the Fayetteville plant, the analyst says “whoever is running it now will probably be running it then,” referring to the local management.

Morrison says that the move will allow Campbell to focus on higher-margin businesses such as soups, sauces and baked goods. The news came a day after Campbell announced that fourth-quarter earnings rose 6% to $192 million, on sales of $1.72 billion.

By spinning off the companies rather than selling them, Campbell will save between $250 million and $400 million in taxes, the analyst says. Current shareholders of Campbell Soup will receive shares in the new entity, he says.

Campbell representatives didn’t return telephone calls from Arkansas Business.

tttttttttt— Bill Bowden