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