CAMDEN, N.J. -- Campbell Soup Co. and Snyder’s-Lance Inc. have entered into an agreement where Campbell will acquire Snyder’s-Lance for $50 per share in an all-cash transaction.
Snyder’s-Lance is a prominent snacking company in the convenience-store space with a portfolio of brands that includes Snyder’s of Hanover, Lance, Kettle Brand, Kettle Chips, Cape Cod, Snack Factory Pretzel Crisps, Pop Secret, Emerald and Late July.
The acquisition combines the strengths of both organizations to drive sales growth and expand Campbell’s footprint in the $89 billion U.S. snacking market, according to the company. The snack market had a three-year compound annual growth rate (CAGR) of nearly 3%, according to IRI.
Snyder’s-Lance has reported a $2.2 billion in net sales for the 12 months ending Sept. 30, 2017. From 2012 to 2016, Snyder’s-Lance net sales grew at an 11.5% CAGR, with organic net sales outpacing category growth with a 4% CAGR. The acquisition of Snyder’s-Lance will accelerate Campbell’s access to faster-growing distribution channels including the convenience and natural channels, the company said.
Snyder’s-Lance will 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. The division will combine Snyder’s-Lance’s portfolio with Campbell’s snacking brands, including Goldfish crackers, Tim Tam biscuits, Milano cookies and Kjeldsens butter cookies.
"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.' " said Denise Morrison, Campbell’s president and CEO. "It will provide our consumers with an even greater variety of better-for-you snacks.
"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. This acquisition will dramatically transform Campbell, shifting our center of gravity and further diversifying our portfolio into the faster-growing snacking category."
Campbell's baked-snacks product portfolio generated about $2.5 billion in net sales in fiscal 2017. With the addition of Snyder’s-Lance’s complementary portfolio, the snacks category will represent approximately 46% of Campbell’s annual net sales (previously 31%) on a pro forma basis.
Brian J. Driscoll, president and CEO of Snyder’s-Lance, said the deal will maximize value for its shareholders. "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."
The closing of the transaction is subject to the approval of Snyder’s-Lance shareholders, as well as customary regulatory approvals and other closing conditions. The closing is expected by the early second quarter of 2018.
This is Campbell’s sixth acquisition in five years. The Camden, N.J.-based 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 in December 2017.