Copyright Justin Sullivan, Getty Images

Campbell Soup Strengthens Grip on Snack Foods with Snyder's-Lance Acquisition

Dec. 19, 2017
Snyder's-Lance brands include Snyder's of Hanover, Cape Cod, Pop Secret and Kettle Brand.

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.

Popular Sponsored Recommendations

Simplify Partner Engagement: A Guide for Manufacturers

Sept. 11, 2023
Design a winning partner program. Make selling faster and easier for partners, to increase mutual success with the help of automation. Download this guide to learn more about ...

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

How Digital Twin Technology is Empowering Manufacturers

Sept. 27, 2023
This FAQ delves into why this technology offers business value and considerations toward implementation.

Legacy Phone Lines Are Draining Your Profits

Oct. 30, 2023
Copper wire phone line expenses that support emergency devices could be costing your company millions of dollars in wasteful overhead expenses. Rates have been skyrocketing while...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!