CAMDEN, N.J. -- Campbell Soup Co. plans to close three plants and sell six domestic and foreign subsidiaries under a massive restructuring plan announced Friday.
Campbell executives said the company was getting out of its unprofitable fresh foods business and concentrating on its soup and frozen foods businesses.
The closing of the plants in New Jersey, Nebraska and Texas will cost 341 people their jobs, company managers said.
Campbell also plans to sell off various divisions in the United States, Canada and Scotland with combined annual net sales of more than $300 million. Those assets include:
-- Campbell Fresh Foods group, which grows mushrooms at farms in Pennsylvania, Georgia, Michigan, Texas, Indiana, Ohio, California, Illinois.
-- The Canadian mushroom business, located on farms in Oakville, Manitoba, and Wellington, Ontario, and Carignan Que.
-- A frozen poultry plant in Sumter, S.C.
-- Domsea Farms, a salmon processing plant in Pocatello, Idaho.
-- McKellar chilled food plant in Govan, Scotland.
-- The Win Schuler's cheese business in Marshall, Mich.
Campbell Chief Executive David Johnson said the company was 'clearing the decks of unprofitable and non-strategic businesses.'
'We are eliminating other underperforming assets and unnecessary facilities worldwide to enable us to focus on building strong future earnings,' he said.
Johnson said when combined with prior actions, 'these divestitures will reduce worldwide (employee) headcount by 11,000, or 20 percent, and significantly increase sales and operating earnings per employee.'
The plant closings will cost the jobs of 240 employees in Fremont, Neb., 50 workers at the Pepperidge Farm plant in Grand Prairie, Texas, and 51 at the equipment and manufacturing center in Moorestown, N.J.
Johnson said the combined actions will result in after-tax charges of $247 million against fiscal 1990 net earnings.
'Our decision to exit the fresh foods and fresh produce business is s tough one,' said Herbert Baum, president of Campbell North America. 'However, the key word for us is 'focus' and we believe concentrating on our established businesses will generate results.'
Friday's announcement was the latest in a series of cost saving measures Campbell's has taken in less than a year.
Last August the company announced the closing of four U.S. plants, including the landmark Camden facility where condensed soup was invented. About 2,800 people were laid off by those closures.
In May, the company announced plans to sell another group of businesses in Italy, England, Belgium and Ireland, with net sales of more than $200 million.
