To expand in the fast-growing snacking category, Campbell Soup Co., Camden, N.J., plans to acquire Snyder’s-Lance for $50 per share in an all-cash transaction. The company announced the deal Dec. 18. The combination of Campbell’s baked snacks lineup and Snyder’s-Lance’s complementary portfolio creates a snacking platform with approximately $4.7 billion net sales on a pro forma basis, according to Campbell.
Campbell’s annual net sales are expected to exceed $10 billion, it says, and it expects to realize approximately $170 million in cost synergies by the end of fiscal 2022. The acquisition, which has been approved by the boards of both companies, will enable Campbell to expand its portfolio of leading snacking brands and accelerate Campbell’s access to faster-growing distribution channels including the convenience and natural channels.
“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,’" explained 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. We look forward to welcoming Snyder’s-Lance’s employees and their trusted family of leading brands to our company.”
Campbell says its baked snacks product portfolio generated approximately $2.5 billion in net sales in fiscal 2017. With the addition of Snyder’s-Lance’s complementary portfolio, snacking would represent approximately 46 percent of Campbell’s annual net sales (previously 31 percent) on a pro forma basis. Campbell’s soup portfolio, including the recent acquisition of Pacific Foods, would represent approximately 27 percent of the company’s annual net sales.
“Following a thorough review process of strategic options, we believe this transaction maximizes value for our shareholders through an immediate and certain cash premium," said Brian J. Driscoll, president and CEO of 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.”
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 iconic snacking brands including Goldfish crackers, Tim Tam biscuits, Milano cookies and Kjeldsens butter cookies.