Campbell to Buy Unilever Units, Raises Forecast

Campbell Soup Co. agreed to buy several of Unilever’s sauce and dried-soup businesses for $920 million to expand in Europe and gain such brands as Oxo bouillon cubes. The company also raised its fiscal second-quarter earnings forecasts as much as 10%, although it is keeping full-year projections essentially the same. With the acquisition, Campbell gains six factories in Europe as Unilever, the biggest food and soap maker, sells brands to allay European Union concern about its purchase of Bestfoods. Campbell’s U.S. retail soup sales rose 3% last quarter, the first increase in five quarters, after the company increased its promotional spending to woo consumers who had switched to ready-to-eat and cheaper brands. Campbell raised its forecasts for fiscal second-quarter profit to between 63 cents and 65 cents a share, 4 to 6 cents higher than current estimates, as it benefited from an advertising campaign and more seasonable winter weather. Shares of Camden, N.J.-based Campbell rose 51 cents to close at $32.45 on the NYSE.