CAMDEN, N.J. – The Campbell Soup Co. has entered into an agreement to acquire the snack maker Snyder’s-Lance, Inc. for $50 per share in an all-cash transaction valued at approximately $4.8 billion. Snyder’s-Lance is a manufacturer of snack products sold under such brands as Snyder’s of Hanover, Lance, Cape Cod, Pop Secret, Emerald and others.
|Denise Morrison, president and c.e.o. of Campbell Soup|
“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,” said Denise Morrison, president and chief executive officer of the Campbell Soup Co. “This acquisition will dramatically transform Campbell, shifting our center of gravity and further diversifying our portfolio into the faster-growing snacking category.”
The purchase price represents a premium of approximately 27% to Snyder’s-Lance’s closing stock price on Dec. 13, 2017, the last trading day prior to media reports regarding a potential transaction, according to Campbell Soup. The acquisition has been approved by the board of directors of both companies.
Snyder’s-Lance reported $2.2 billion in net sales for the 12 months ended Sept. 30, 2017. Campbell Soup’s baked snacks product portfolio generated approximately $2.5 billion in net sales in fiscal 2017.
With the addition of Snyder’s-Lance’s product portfolio, snacking would represent approximately 46% of Campbell Soup’s annual net sales, up from 31%. Campbell’s soup portfolio, including the recent acquisition of Pacific Foods, would represent approximately 27% of the company’s annual net sales.
Snyder’s-Lance will become part of Campbell Soup’s Global Biscuits and Snacks division, which includes the company’s Pepperidge Farm, Arnott’s and Kelsen businesses, and the simple meals and shelf-stable beverages business in Australia, Asia Pacific and Latin America. The division is led by Luca Mignini, president. The division will combine Snyder’s-Lance’s portfolio with Campbell Soup’s snacking brands, including Goldfish crackers, Tim Tam biscuits, Milano cookies and Kjeldsens butter cookies.
|Brian Driscoll, president and c.e.o. of Snyder’s-Lance|
“Following a thorough review process of strategic options, we believe this transaction maximizes value for our shareholders through an immediate and certain cash premium,” said Brian J. Driscoll, president and c.e.o. of Snyder’s-Lance. “The transaction also unlocks the value of our portfolio, reflecting the progress we have made planning and executing our transformation. We are excited to join Campbell and to continue to provide great products to our consumers with an uncompromising focus on ingredients, quality and taste.”
Headquartered in Charlotte, N.C., Snyder’s-Lance has approximately 6,000 employees and operates 13 manufacturing plants throughout the United States and United Kingdom.The closing of the transaction is subject to the approval of Snyder’s-Lance shareholders, as well as regulatory approvals and other closing conditions. Closing is expected by early second quarter of calendar 2018. Campbell Soup management expects the acquisition to be accretive to adjusted earnings per share in fiscal 2019, excluding integration costs and costs to achieve synergies.