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Campbell to buy salty snack maker Snyder’s-Lance for $4.87bn

FBR Staff Writer Published 19 December 2017

Canned soup producer Campbell Soup has agreed to acquire Snyder’s-Lance for $4.87bn to expand its portfolio of snacking brands.

As per the deal terms, Campbell will offer $50 to Snyder-Lance’s shareholders for each share they hold in the salty snack maker.

North Carolina-based Snyder’s-Lance, which was formed in 2010 as a merger between Lance and Snyder's of Hanover, manufactures and markets snack food in the US and UK, and distributes them across the world.

Its portfolio comprises brands such as Snyder’s of Hanover, Lance, Kettle Brand, KETTLE chips, Emerald, Cape Cod, Pop Secret, Snack Factory Pretzel Crisps and Late July.

Snyder’s-Lance president and CEO Brian Driscoll said: “Following a thorough review process of strategic options, we believe this transaction maximizes value for our shareholders through an immediate and certain cash premium.

“The transaction also unlocks the value of our portfolio, reflecting the progress we have made planning and executing our transformation.”

Snyder’s-Lance had registered net sales of $2.2bn for the trailing 12 months that ended 30 September, 2017.

Its acquisition is expected to speed up the access of Campbell to faster-growing distribution channels such as convenience and natural channels.

Post acquisition, Snyder’s-Lance will come under the Global Biscuits and Snacks division of Campbell.

Campbell president and CEO Denise Morrison said: “The combination of Snyder’s-Lance brands with Pepperidge Farm, Arnott’s and Kelsen will create a diversified snacking leader, drive sales growth and create value for shareholders.

“This acquisition will dramatically transform Campbell, shifting our center of gravity and further diversifying our portfolio into the faster-growing snacking category.”

The transaction is subject approval from shareholders of Snyder’s-Lance along with customary regulatory approvals and other closing conditions. It is anticipated to be completed by early second quarter of 2018.

Earlier this month, Campbell completed its $700m acquisition of organic food manufacturer Pacific Foods of Oregon.

Image: Campbell world headquarters office in Camden, New Jersey, USA. Photo: courtesy of CSC BRANDS, L.P.