Campbell's Soup To Buy Snyder's-Lance For Nearly $5 Billion

Lucy Hill
December 19, 2017

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.

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 deal is waiting for approval from Snyder-Lance's shareholders and regulatory approval.

"Right now, we're still very early in this process and certain decisions have yet to be made". It has surged 27% since Tuesday's close on reports Campbell Soup was preparing a bid. "In the meantime, it is business as usual for us", Snyder's-Lance spokesman Joey Shevlin told the Observer in an email Monday.

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

Snyder's-Lance is the product of the 2010 merger of Pennsylvania-based Snyder's of Hanover and Charlotte-based Lance.

In addition to snacks, Campbell's also wants to expand fresh foods unit, which accounts for 12% of sales.

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In 2012, Campbell acquired Bolthouse Farms for $1.55 billion.

Camden, New Jersey-based Campbell has reported falling sales as more people avoid processed foods. The company was No. 862 on the 2017 Forbes list of Fortune 1000 companies.

Campbell Soup will spend $4.87 billion in cash to acquire Snyder's-Lance, gorging on a snack market that has grown increasingly competitive.

Last April, Carl Lee unexpectedly retired as CEO as the company said it faced "difficult challenges" that weighed on its profitability in the first quarter.

The deal with the Pretzel owner is the soup company's biggest deal in its 148-year history. Lee Jr. was replaced by Brian Driscoll, the former president of Diamond Foods.

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. It is unclear if the Campbell Soup deal affects the expansion plans.

Other reports by TheDailyFarc

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