Campbell Soup forms new US snacks division with Snyder’s-Lance acquisition

By Gill Hyslop contact

- Last updated on GMT

The newly-formed Campbell Snacks' product portfolio will include Snyder's-Lance key brands like Snyder's of Hanover, Kettle and Cape Cod.
The newly-formed Campbell Snacks' product portfolio will include Snyder's-Lance key brands like Snyder's of Hanover, Kettle and Cape Cod.
Campbell Soup has finalized the purchase of Snyder’s-Lance and created a new snacks division that will combine the operations and brands of the Charlotte-based snacks company and Pepperidge Farm.

Carlos Abrams-Rivera, Campbell’s former president of US Biscuits and Snacks, will lead Campbell Snacks – which Campbell’s estimates will generate $10bn in net sales annually.

Matt Wilken – who has been at Snyder’s-Lance for the past seven years in the area of business strategy – has been appointed vice president of strategy.

We carefully selected leaders from Campbell and Snyder’s-Lance to form the Campbell Snacks leadership team based on their expertise and understanding of how to leverage both businesses to support overall growth and profitability across the enterprise​,” said Abrams-Rivera.

The Campbell Snacks team will focus on optimizing the value of our US snacks business to deepen our partnership with customers through the power of the combined portfolio​.”

Largest deal in its history

The purchase of the Lance peanut butter sandwich crackers and Snyder’s of Hanover pretzels – for $50 per share in cash, which represents a value of approximately $6.1bn – is the largest in Campbell’s 149-year history.

The food giant is in the midst of a $500m cost-cutting program that is scheduled to be complete in 2020.

Campbell’s global baked snacks product portfolio generated approximately $2.5bn in sales last year – approximately 32% of the company’s next sales.

The company estimates the addition of Snyder’s-Lance will mean snacks could account for approximately 47% of its annual net sales.

The Campbell Snacks portfolio will feature brands such as Goldfish and Milano, along with Snyder’s-Lance’s brands such as Snyder’s of Hanover, Kettle chips, and Snack Factory Pretzel Crisps.

Related topics: Snyder's-Lance, Snacks, Manufacturers, Markets

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