Food acquisition news : American canned soup producer Campbell Soup has struck a deal to acquire salty snacks manufacturer Snyder’s-Lance for $4.87 billion in a move to grow its snacking product range.

In this regard, Campbell Soup will offer $50 to the shareholders of Snyder’s-Lance for each of the share they own in the salty snacks manufacturer.

Snyder’s-Lance with brands like Snyder’s of Hanover, Lance, Cape Cod, Pop Secret, Kettle Brand, Kettle chips, Emerald ,Snack Factory Pretzel Crisps and Late July, claims to be the second largest salty snacks manufacturer in the United States.

Headquartered in Charlotte, North Carolina, Snyder’s-Lance was established as a $1.6 billion company in July 2010 following the merger of Lance and Snyder’s of Hanover.

Commenting on Campbell Soup acquisition of Snyder’s-Lance, Brian Driscoll – the President and CEO of Snyder’s-Lance said: “Following a thorough review process of strategic options, we believe this transaction maximizes value for our shareholders through an immediate and certain cash premium.

“The transaction also unlocks the value of our portfolio, reflecting the progress we have made planning and executing our transformation.”

The salty snacks manufacturer had recorded $2.2 billion in net sales for the 12 months that ended September 30, 2017.

Campbell Soup expects the acquisition of Snyder’s-Lance to accelerate its reach to convenience and natural channels among other faster-growing distribution channels.

After its acquisition by Campbell Soup, Snyder’s-Lance will operate under the Global Biscuits and Snacks unit of the American canned soup producer.

Denise Morrison – the President and CEO of Campbell Soup, commenting on Snyder’s-Lance acquisition by Campbell Soup, said: “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.”

The Campbell Soup acquisition of Snyder’s-Lance would need approval from Snyder’s-Lance’s shareholders apart from customary regulatory approvals and certain closing conditions. The deal is likely to be closed during the early part of the second quarter of 2018.

Campbell Soup acquisition of Snyder’s-Lance is the second big acquisition of the American canned soup producer after it bought Pacific Foods of Oregon, an organic food manufacturer in a $700 million deal.

  Campbell Soup, Food acquisition news, Snyder’s-Lance, USA