Campbell Soup, Snyder's-Lance shares rise on deal report

Campbell Soup, Snyder's-Lance shares rise on deal report

Snacks will amount to almost half of Campbell's annual revenue, while soup will fall to slightly more than a quarter.

In a statement Monday morning, the local snack maker said the all-cash deal has been approved by the boards of directors of both companies.

Luca Mignini, president of Campbell's global biscuits and snacks unit, which will include the newly acquired brands, said Snyder's-Lance has had 4 percent annual revenue growth in recent years, excluding acquisitions - far better than Campbell overall, which has struggled to increase revenue.

She noted snack sales, which represent an $89 billion market in the USA, are growing faster than other grocery store categories.

Past year it joined the ballooning number of consumer packaged giants to launch a venture unit in hopes of keeping closer tabs on innovation.

More news: Salvation Army red kettles half way to Christmas goal

Since taking over as Campbell Soup's chief executive in 2011, Denise Morrison has moved the Camden company away from soup and other slow-growing items sold in the center aisles of traditional supermarkets. Amplify went public in August 2015 at $18 a share but had fallen steadily for more than a year.

The deal with Campbell Soup comes amid other major changes at the company, which is known for snacks such as Snyder's of Hanover pretzels, Lance peanut butter sandwich crackers and Pop Secret popcorn. A spat with Walmart over pricing and shelf space contributed to the drop. Pepperidge Farm sales were up 3% last quarter during an otherwise lackluster summer.

Campbell is paying a 27% premium on Snyder's-Lance's stock price and is taking on more than $6 billion in debt to finance the purchase.

CNBC first reported earlier this month that Snyder's-Lance was considering putting itself up for sale after an initial takeover approach from Campbell Soup.

"In the meantime, it is business as usual for us", Snyder's-Lance spokesman Joey Shevlin told the Observer in an email Monday.

Related Articles