The G+T banking team advised KKR on the A$1.040 billion and US$400 million first-lien / second-lien Term Loan B financing of its A$3.2 billion acquisition of Arnott’s Biscuits (Arnott’s) and certain international operations of Campbell Soup Company (Campbell International). The debt proceeds have primarily been utilised to fund the acquisition. G+T also advised KKR in relation to a bespoke management equity plan for the acquisition.
In this significant deal, KKR have invested in a portfolio of brands that include the iconic Australian biscuit brand, Arnott’s, which has over 150 years of brand heritage, and Campbell International, which is comprised of a portfolio of Campbell brands, with leading manufacturing capabilities and distribution channels across Australia, New Zealand and the Asia-Pacific region.
Banking partner John Schembri noted the acquisition was KKR’s biggest ever buyout in Australia and would provide KKR with the opportunity to grow Arnott’s in Australia, while developing the trusted Campbell’s brands across the broader Asian market. John commented “the US-style Term Loan B facilities (which include a delayed draw facility) will provide Arnott’s with a flexible financing package to help secure its strategic objectives going forward.”
G+T’s involvement in this transaction, together with its roles on the majority of recent Term Loan B and unitranche structures in the Australian market, further cements G+T’s place as a leader in the Australian market in the alternate debt structure space.
Partner John Schembri led the G+T team with support from lawyers Erin Cartledge, Kerry-Lee Carew and Charley Xu, and graduate Matt Mewing. Corporate Advisory partner Alex Kauye advised KKR on corporate aspects of the transaction with assistance from special counsel Ebony Keenan-Dunn and lawyers Travis Cordingley, Ciara Coleman and Joshua Fisher.
Gilbert + Tobin’s Banking + Infrastructure team is recognised in the leading legal directories, including most recently being ranked at Band 1 for Banking and Finance – Acquisition Finance by Chambers Asia-Pacific 2020.