Campbell Soup Company agrees to acquire Snyder's-Lance

Dec 19, 2017, 10:52
Campbell Soup Company agrees to acquire Snyder's-Lance

In Snyder's, Campbell is getting is a hot snack food company whose sales have grown almost 12% a year over the past five years.

CNBC first reported earlier this month that Snyder's-Lance was considering putting itself up for sale after an initial takeover approach from Campbell Soup.

Campbell's snack business now includes Pepperidge Farm products, as well as the Australian-based Arnott's brand.

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Snyder's portfolio includes brands such as Snyder's of Hanover, Lance, Kettle Brand, KETTLE chips, Cape Cod, Snack Factory Pretzel Crisps, Pop Secret, Emerald and Late July.

"The acquisition will help us accelerate our efforts to expand into faster-growing distribution channels", including convenience stores, Morrison said. Those were created to move Campbell into fresher-food categories seen by its leadership as more in line with today's consumers, though management frequently highlighted snacks as a target for expansion. Over the last several years, the company has been working to boost its portfolio of "better-for-you products", including through its $1.9 billion purchase of San Francisco-based Diamond Foods in March 2016. The Camden firm had adjusted earnings before interest and taxes, or EBIT, of $1.49 billion, for fiscal 2017, a 2 percent gain. Its EBIT for the period was $193 million. The final acquisition is expected to close by the second quarter of 2018.

"A lot of those companies don't have, or haven't taken advantage of, all of the nooks and crannies of the tax code", said Jason Pride, director of investment strategy at Glenmede.

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Hoping to grow its snacks business Campbell will pay Snyder's shareholders $50 per share in cash.

Past year it joined the ballooning number of consumer packaged giants to launch a venture unit in hopes of keeping closer tabs on innovation.

"We know how to do this", she said of cost-cutting.

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This story will be updated.