NEW YORK (TheStreet) -- Shares of Campbell Soup Co (CPB) were rising 0.41% to $46.47 in midday trading Tuesday, after the soup company agreed to acquire Garden Fresh Gourmet for $231 million, according to The Wall Street Journal.
Garden Fresh Gourmet makes salsa and hummus and has roughly $100 million in sales per year.
With the acquisition, Campbell Soup is expanding its reach in the fresh-food aisle beyond its soups.
"The acquisition of Garden Fresh Gourmet is another milestone in reshaping our portfolio toward faster-growing categories, including packaged fresh and organic foods," Campbell CEO Denise Morrison said in a statement.
Camden, N.J.-based Campbell Soup, along with its subsidiaries, manufactures and markets branded convenience food products such as canned soups.
Insight from TheStreet's Research Team:
Campbell Soup is a part of David Peltier's DividendStockAdvisor.com Portfolio. Here is what Dave had to say about the stock in a recent alert:
We've seen merger activity in...Campbell Soup (CPB:NYSE)...overnight.
...Campbell Soup said earlier today that it is buying privately held Garden Fresh Gourmet for $231 million. The company makes refrigerated salsa, tortilla chips and other dips, with sales of $100 million in 2014. Campbell will fund the purchase with commercial paper and the deal is expected to be slightly accretive to fiscal 2016 (ending July) earnings. The stock is little changed this morning, along with the broader market, and recently changed hands around $46.26. We maintain the company is attractive at current levels for its 2.7% dividend yield.