Campbell Soup to buy snack maker Snyder's-Lance for $50.00 per share

Campbell Soup has agreed to buy snack maker Snyder's-Lance for $50.00 per share in an all-cash transaction.

The purchase price represents a premium of around 27% to Snyder's closing price on 13 December, which was the last trading day prior to media reports of a potential deal. Campbell said the transaction, which has been approved by the boards of both companies, will enable it to expand its portfolio of leading snacking brands.

The company said it will combine the strength of both groups to drive sales growth and expand its footprint in the $89bn US snacking market, which had a three-year compound annual growth rate of nearly 3%. In the 12 months to the end of September, Snyder's-Lance reported $2.2bm in net sales.

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.

Denise Morrison, Campbell’s president and chief executive officer, said: "The acquisition of Snyder’s-Lance will accelerate Campbell’s strategy and is in line with our Purpose, ‘real food that matters for life’s moments.’ It will provide our consumers 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.

"This acquisition will dramatically transform Campbell, shifting our centre of gravity and further diversifying our portfolio into the faster-growing snacking category. We look forward to welcoming Snyder’s-Lance’s employees and their trusted family of leading brands to our company."

Campbell's baked snacks product portfolio generated around $2.5bn in net sales in fiscal 2017. With the addition of Snyder’s-Lance’s complementary portfolio, snacking would represent approximately 46% of Campbell’s annual net sales on a pro forma basis, versus 31% previously.