Snack giant Snyder's-Lance is to buy Wisconsin-based Baptista's Bakery and sell its private brands business as its re-shapes its portfolio to focus on branded products and expand its capabilities in premium and better-for-you snacks.
The deal to acquire Baptista's - the terms of which have not been disclosed - is expected to close in the second quarter of this year, said Snyder's-Lance president and CEO Carl E. Lee, Jr: "Baptista's is a leader in highly differentiated snacks, and we're excited to be working with their talented, creative team.
"We are committed to retaining and growing the Franklin, Wisconsin facility, which is strategically well positioned within our network.”
He added: “By combining the resources and expertise of Baptista's with the scale of Snyder's-Lance, we will accelerate our ability to deliver exciting, on-trend snacks and product innovation while expanding our 'better for you' products and gaining needed capacity for our growing Snyder's of Hanover pretzels."
Baptista's, which manufactures some Snyder's-Lance products including its fast-growing Snack Factory Pretzel Crisps brand, specializes in product development and contract manufacturing.
Focusing more completely on our branded products will create better long term shareholder value
The deal was announced as Snyder's-Lance unveiled plans to sell its private brands business and two manufacturing plants (in Burlington, Iowa, and Ontario, Canada) to Ohio-based Shearer's Foods for $430m in order to focus on its brands.
This transaction is also expected to close in the second quarter, although Shearer's still needs to secure financing for the deal.
Said Lee: “We believe focusing more completely on our branded products will create better long term shareholder value as we grow organically through product innovation and the acquisition of additional core brands.”
Snyder's Lance is based in Charlotte, North Carolina, and is best known for brands such as Snyder's of Hanover pretzels, Stella D'Oro breadsticks and cookies, and Jays potato chips.