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.
Based in Charlotte, NC, Snyder’s-Lance produces iconic American snack brands like Cape Cod potato chips, Snyder’s of Hanover pretzels, and the Lance brand. Campbell Soup said the acquisition will help expand its position in the $89 billion snacking market in the U.S.
The purchase of the snack maker “will provide our customers 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,” said Denise Morrison, president and chief executive officer of Campbell’s, in a statement.
Following the purchase, Campbell’s projects that snacking will represent 46% of its sales on a pro forma basis next year, while soup products are anticipated to make up 27% of sales. Snyder’s-Lance will become a part of Campbell’s Global Biscuits and Snacks division following the transaction’s close.
“Campbell’s expertise in brand-building, R&D, and supply chain and operations, coupled with Snyder’s-Lance well-known portfolio, distribution system, and history of strong sales growth, will help us to create a differentiated, branded snacking business with greater scale,” said Luca Mignini, president of Campbell’s Global Biscuits and Snacks division, in the joint press release.
The release noted that the purchase of the snack maker represents the sixth acquisition by Campbell’s within the past five years.