CAMDEN, N.J. -- Campbell Soup Co. has closed on its acquisition of Snyder’s-Lance Inc. for $6.1 billion in an all-cash transaction. The deal, first announced in December, creates a $10 billion company with nearly half of its annual sales coming from snacks.
Campbell will merge all its Pepperidge Farm products, including Goldfish Crackers, Harvest Whole Wheat Bread and Golden Butter Crackers, with Snyder’s-Lance brands, such as Hanover, Lance and Cape Cod, into a U.S.-only division called Campbell Snacks.
"The combination of Campbell and Snyder's-Lance creates a unique, diversified snacking portfolio of differentiated brands and a large variety of better-for-you snacks for consumers,” said Denise Morrison, president and CEO of the Campbell Soup Co. “I am excited about the combination and confident that it will create significant shareholder value through both revenue growth and cost synergies."
Carlos Abrams-Rivera, most recently president of United States Biscuits and Snacks for Campbell, will run the Campbell Snacks team and report to Luca Mignini, president of Global Biscuits and Snacks. Other team leaders include Chris Foley, senior vice president and chief marketing officer; Bill Livingstone and Paul Serra, vice presidents of supply chain; Cory Onell, vice president of sales, customer development and direct store delivery; George Vindiola, vice president of research and development; and Matt Wilken, vice president of strategy.
“The Campbell Snacks team will focus on optimizing the value of our U.S. snacks business to deepen our partnership with customers through the power of the combined portfolio,” said Abrams-Rivera.
Before the acquisition, snacking represented 32% of Campbell’s annual net sales. With the addition of Snyder’s-Lance, snacking will now represent about 47%. Campbell’s soup portfolio will represent about 26% of the company’s annual net sales. Campbell expects to garner about $125 million of Snyder’s-Lance’s current cost transformation program, as well as receive about $170 million in cost synergies by the end of fiscal 2022.
The company will detail how Snyder’s-Lance—an organization that reported $2.2 billion in net sales last year—will play into the next fiscal year in its third-quarter earnings report on May 18.
This is Campbell’s sixth acquisition in five years. It 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.
Snyder's-Lance, Charlotte, N.C., manufactures and markets snack foods, including pretzels, sandwich crackers, potato chips, cookies, tortilla chips, popcorn, nuts and other snacks. It sells products under the Snyder's of Hanover, Lance, Kettle Brand, Kettle Chips, Cape Cod, Snack Factory Pretzel Crisps, Pop Secret, Emerald, Late July, Krunchers, Tom's, Archway, Jays, Stella D'oro, Eatsmart Snacks, O-Ke-Doke, Metcalfe's Skinny and other brand names, along with a number of third-party brands. It distributes products nationally through grocery and mass merchandisers, convenience stores, club stores, foodservice outlets and other channels.
Snyder’s of Hanover and Lance merged in 2010.
Camden, N.J.-based Campbell Soup produces foods and meals, including soup and sauces, snacks and healthy beverages. Other major brands include Campbell's, V8, Swanson, Pace and Prego.