Campbell Soup (NYSE: CPB ) has completed its acquisition of premium organic baby food provider Plum Organics. The company intends to operate Plum as a standalone business within Campbell's North American division. The acquisition will retain the baby food company's original management team, which includes its president and co-founder, Neil Grimmer.
In 2012, Plum generated approximately $93 million in revenue. The company is the No. 2 distributor of organic baby food, and the No. 4 overall baby food brand in the United States. Baby food is estimated to be a $2 billion industry in the U.S., and with the addition of the company's new line of products, Campbell expects to generate annual sales of more than $1 billion.
Mark Alexander, president of Campbell's North American division, is "thrilled" to welcome Plum into the Campbell's family of products: "Plum is generating great success in the marketplace, and we believe that Campbell's resources will help fuel further expansion of the 'Plum' brand within the fast-growing premium, organic food segment."