Campbell Soup is buying snacks maker Snyder's-Lance for $4.87 billion
- Campbell Soup has agreed to buy Snyder's-Lance for $50 per share in an all-cash deal.
- The deal would fold Snyder's pretzels and other snacks into Campbell's biscuits and snacks division that includes brands like Goldfish crackers and Milano cookies.
- Campbell Soup has pushed into the market for snacks amid declining soup sales.
Campbell Soup announced Monday that it agreed to buy the snack maker Snyder's-Lance for $50 per share.
The all-cash deal is worth $4.87 billion.
Amid declining soup sales, Campbell has pushed into other markets. This acquisition was its sixth in five years. Earlier in December, it bought organic broth and soup maker Pacific Foods.
The deal "will provide our consumers with an even greater variety of better-for-you snacks," said Campbell Soup CEO Denise Morrison, in a statement. "The combination of Snyder’s-Lance brands with Pepperidge Farm, Arnott’s and Kelsen will create a diversified snacking leader, drive sales growth and create value for shareholders."
Snyder's-Lance will become part of Campbell's global biscuits and snacks division which includes brands like Goldfish crackers and Milano cookies.
Campbell's offer represents a 27% premium to Snyder's closing price on Wednesday, a day before CNBC first reported that the company had hired an investment bank to consider a sale after being approached by Campbell. Snyder's stock rose 7% to as high as $49.95 in premarket trading, nearly matching the offer price.
Credit Suisse and Rothschild were financial advisers to Campbell Soup, while Goldman Sachs and Deutsche Bank worked with Snyder's-Lance.
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