Lance, Kellogg win bids to acquire Archway assets

by Eric Schroeder
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BATTLE CREEK, MICH. — The assets of Mother’s Cake and Cookies and its subsidiary, Archway Cookies L.L.C., have been awarded to The Kellogg Co. and Lance, Inc., respectively, following a bidding process that concluded Dec. 3 in the U.S. Bankruptcy Court for the District of Delaware.

Archway and Mother’s Cake and Cookies abruptly closed their facilities in Battle Creek, Mich., and Ashland, Ohio, on Oct. 3 and subsequently put their assets up for sale.

Lance, which arose as the "stalking horse" bidder for the Archway assets on Nov. 19, beat out three other bidders for the acquisition of the company through its subsidiary, Archer Acquisitions. As part of its bid, Lance has agreed to pay approximately $30 million for substantially all of the assets of Archway Cookies L.L.C. and will not be liable for any of Archway’s debts, unless included in the purchase agreement. The transaction is expected to close no later than Dec. 15.

"We’re excited about this acquisition," said David V. Singer, president and chief executive officer of Lance, Inc. "Archway was founded in the 1930s, and has built solid market share in its niche of soft, home-style cookies. Archway is an excellent addition to our growing portfolio of consumer preferred niche brands. We are looking forward to reopening the Ashland, Ohio, production facility, where we intend to produce Archway cookies. This facility will also provide the capacity to support growth in our existing business and capabilities that will broaden the products we can offer our private brands customers, thus supporting our growth goals for our non-branded business."

Headquartered in Charlotte, N.C., Lance manufactures and markets snack foods throughout much of the United States and other parts of North America. The company’s products include sandwich crackers and cookies, potato chips, crackers, cookies, other snacks, sugar wafers, nuts, restaurant style crackers and candy under the Lance, Cape Cod and Tom’s brands. Lance has manufacturing facilities in North Carolina, Iowa, Georgia, Massachusetts, Texas, Florida, Arkansas and Ontario.

Meanwhile, The Kellogg Co. reached agreement to acquire the trademarks and recipes of Mother’s Cake & Cookie Co. a regional brand with a loyal consumer following in the western United States.

"Mother’s Cookies’ brands are a complementary fit to our existing cookie portfolio," said David Mackay, president and c.e.o., Kellogg. "We will use our brand-building and innovation expertise, our understanding of the cookie category as well as our existing distribution infrastructure to grow the Mother’s Cookies business."

Kellogg said it plans to reintroduce many of Mother’s Cookies brands, including its iced animal crackers, sandwich cookies and wire cut cookies. The products will be managed as part of Kellogg’s Snacks business unit, which includes Chips Deluxe, Fudge Shoppe, Sandies and Murray Sugar Free.

Financial terms of Kellogg’s acquisition were not disclosed.

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