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CAMDEN, N.J., and CHARLOTTE, N.C. — Campbell Soup Co. has agreed to acquire snack maker Snyder’s-Lance in a deal valued at about $4.9 billion.
Campbell said the $50-per-share agreement will further its efforts to grow its snack product portfolio, notably better-for-you snacking options.
The Snyder’s-Lance brand roster includes such well-known names as Snyder’s of Hanover, Lance, Kettle Brand, KETTLE chips, Cape Cod, Snack Factory Pretzel Crisps, Pop Secret, Emerald and Late July. The company has leading market positions in its core categories — including pretzels, sandwich crackers, kettle chips, deli snacks and organic and natural tortilla chips — posted sales of $2.2 billion for the 12 months ended Sept. 30.
“The acquisition of Snyder’s-Lance will accelerate Campbell’s strategy and is in line with our purpose, ‘real food that matters for life’s moments.’ It will provide our consumers with an even greater variety of better-for-you snacks,” stated Denise Morrison, president and chief executive officer of Campbell Soup Co. “The combination of Snyder’s-Lance brands with [Campbell’s] Pepperidge Farm, Arnott’s and Kelsen will create a diversified snacking leader, drive sales growth and create value for shareholders”
In addition, the addition of Snyder’s-Lance stands to expedite Campbell’s access to faster-growing distribution channels, such as the convenience and natural channels.
“This acquisition will dramatically transform Campbell, shifting our center of gravity and further diversifying our portfolio into the faster-growing snacking category,” Morrison noted. “We look forward to welcoming Snyder’s-Lance’s employees and their trusted family of leading brands to our company.”
Plans call for Snyder’s-Lance to become part of Campbell’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 president Luca Mignini, President.
The unit will combine Snyder’s-Lance’s lineup with Campbell’s iconic snack brands, including Goldfish crackers, Tim Tam biscuits, Milano cookies and Kjeldsens butter cookies.
“We believe this transaction maximizes value for our shareholders through an immediate and certain cash premium,” commented Brian Driscoll, president and CEO of Charlotte, N.C.-based 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.”
Campbell said its baked snacks product portfolio generated about $2.5 billion in sales during fiscal 2017. With the addition of the Snyder’s-Lance products, snacking would represent roughly 46% of Campbell’s annual net sales on a pro forma basis, up from 31% previously.
“Campbell’s expertise in brand-building, R&D, and supply chain and operations, coupled with Snyder’s-Lance’s well-known portfolio, distribution system and history of strong sales growth, will allow us to create a differentiated, branded snacking business with greater scale,” according to Mignini. “The combined portfolio will be even more relevant to consumers who are increasingly seeking better-for-you snacks.”
The transaction is expected to close early in the 2018 second quarter, pending shareholder and regulatory approval and other customary closing conditions.
Campbell added that the deal marks its sixth acquisition in five years. The company acquired Bolthouse Farms in August 2012, organic baby food company Plum in June 2013, biscuit company Kelsen in August 2013, fresh salsa and hummus maker Garden Fresh Gourmet in June 2015, and organic broth and soup producer Pacific Foods this December.
