Campbell Soup snaps up snacks group Snyder's-Lance for $4.87bn
Campbell Soup is acquiring snacks company Snyder's-Lance for US$4.87bn in cash, in what will be the largest ever deal in the soup company’s 148-year history.
Valued at US$50 a share, the deal would fold Snyder’s pretzels and other snacks into Campbell’s biscuits and snacks division which includes brands such as Goldfish crackers and Milano cookies.
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The deal marks Campbell Soup’s push towards other markets amid declining soup sales.
The acquisition is the company’s sixth in five years.
By adding Snyder's snack brands like Kettle Chips and Pop Secret popcorn, the company hopes to broaden its snack business and create a stronger foothold in convenience stores.
Campbell Soup CEO Denise Morrison said: "This acquisition will dramatically transform Campbell, shifting our centre of gravity and further diversifying our portfolio into the faster-growing snacking category."
The deal adds to a wave of consolidation in the food and beverage industry as traditional companies have increasingly seen a slump in sales.
This week, Hershey also snapped up its snack food rival Amplify Snack Brands for US$1.6bbn and last month chocolate giant Mars bought a minority stake in Kind, the fruit and nut bar maker.
This series of acquisitions points to the opportunity that many industry leaders see in the snack market segment, appealing to the growing number of people who eat and shop on the go.
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