Campbell, Snyder’s-Lance acquisition forms new snacking unit
After it was previously announced that Campbell Soup was looking to acquire Snyder’s Lance, both companies have revealed that acquisition has now been completed for $50 per share in an all-cash transaction, which represents an enterprise value of approximately $6.1 billion.
"Snyder's-Lance represents a strategic and transformative acquisition for Campbell, creating a $10 billion company with nearly half of our annual net sales in the faster-growing snacks category," Denise Morrison, Campbell’s president and chief executive officer, said. "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. I am excited about the combination and confident that it will create significant shareholder value through both revenue growth and cost synergies."
The completion of this acquisition will allow the Camden, N.J.-based company to combine the Pepperidge Farm and Snyder’s-Lance portfolios to form a new unified snacking organization in the United States called Campbell Snacks.
The former president of the U.S. biscuits and snacks division, Carlos Abrams-Rivera, will lead the division and report to Luca Mignini, the president of global biscuit and snacks.
“We carefully selected leaders from Campbell and Snyder's-Lance to form the Campbell Snacks leadership team based on their expertise and understanding of how to leverage both businesses to support overall growth and profitability across the enterprise,” Abrams-Rivera said. “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.”
The newly formed company's portfolio will now include the Pepperidge Farms, Goldfish, Milano, Snyder’s of Hanover, Lance, Kettle Brand, Kettle chips, Cape Cod, Snack Factory Pretzel Crisps, Emerald and Late July brands.
"We have the insights and know-how in snacks to execute and grow in this space. I am very confident that Carlos and the expertise of the Campbell Snacks leadership team will continue to drive momentum in the businesses and achieve the cost synergies we have outlined. We are taking a disciplined approach to the integration of Snyder's-Lance to ensure its success," Mignini said.