The Campbell Soup Co. strengthened its presence in the snack food category with an announcement Monday that it would purchase Snyder's-Lance, whose salty snack brands include Snyder's of Hanover, Cape Cod, Pop Secret and Kettle Brand.
It's the second major acquisition announcement in the snack food category on a single day, as Hershey Co. announced its plans to buy Amplify Snack Brands Inc., maker of SkinnyPop popcorn.
The Campbell Soup deal calls for Campbell to acquire Snyder's-Lance for about $4.9 billion in cash, reports Bloomberg. The $50 per share purchase price represents an approximately 27% premium to Snyder's-Lance closing stock price on Dec. 13.
Snyder's-Lance, based in Charlotte, employs about 6,000 and has 13 manufacturing sites.
"This acquisition will dramatically transform Campbell, shifting our center of gravity and further diversifying our portfolio into the faster-growing snacking category," Denise Morrison, Campbell's president and CEO, said in a statement.
Campbell's snack division includes well-known foods such as Pepperidge Farm Goldfish crackers and Milano cookies, as well as Kjeldsens butter cookies. With the Snyder's-Lance acquisition, snack foods would represent about 46% of Campbell's annual net sales on a pro forma basis, the company said. Previously it represented 31%.
The transaction is subject to approval by Snyder's-Lance shareholders and traditional regulatory approval. Closing is expected in the second quarter of 2018, according to Campbell Soup.