Campbell Soup to Buy Snack Manufacturer Snyder's-Lance

Campbell’s Is Buying Snyder’s

Campbell’s Is Buying Snyder’s

The Campbell Soup Company is betting on snacks after the Camden, NJ food firm entered into a definitive agreement to acquire snack manufacturing firm Snyder's-Lance for $4.87 billion, a joint press release announced Monday.

Campbell Soup is hungry for pretzels, chips and popcorn.

Buying Snyder's-Lance will "dramatically transform Campbell, shifting our center of gravity", Campbell CEO Denise Morrison said in a statement. That has far outpaced the rest of the $89 billion US snack industry.

Snyder's-Lance shares, which have gained in the past few session on reports of a possible deal, rose 6.8 percent to a record high of $50 per share, matching Campbell's offer. Amplify went public in August 2015 at $18 a share but had fallen steadily for more than a year.

Melding Campbell and Snyder's-Lance's roughly $2 billion USA snack portfolios will radically cut costs and add complementary salty snacks to round out Campbell's successful Pepperidge brand and Lance's position as a big national distributor of salty snacks, Feeney said.

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Like all consumer giants, Campbell's attempts to move fresher are hindered by the relatively few number of large-scale deals that can make an immediate impact. Fifth Third Bancorp rose 44 cents, or 1.5 percent, to $30.47 and KeyCorp gained 40 cents, or 2 percent, to $20.16. The deal is expected to be completed in the first quarter of 2018.

The deal is waiting for approval from Snyder-Lance's shareholders and regulatory approval. It is unclear if the Campbell Soup deal affects the expansion plans.

The division led by president Luca Mignini, 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 company says when the Snyder's-Lance deal closes, snacking will represent about 46 percent of Campbell's annual net sales.

Credit Suisse and Rothschild acted as financial advisers to Campbell Soup. Goldman Sachs & Co LLC advised Snyder's-Lance and Jenner & Block LLP gave legal counsel.

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