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Snyder's-Lance Inc., Charlotte, N.C., has entered into a definitive agreement to acquire Princeton, N.J.-based Snack Factory, LLC, maker of Pretzel Crisps pretzel-shaped crackers, and certain affiliates for $340 million in cash. This includes approximately $60 million of net present value of future tax benefits.
Snyder's-Lance expects to close the transaction early in the fourth quarter. The completion of the transaction is subject to customary conditions, including receipt of required regulatory approvals.
According to Snyder’s-Lance, the transaction adds a fast-growing, differentiated, national core brand to the company’s existing portfolio; provides entry into the deli-bakery section of grocery stores; is expected to add approximately 2 cents to the company’s earnings per share in 2012, excluding transaction related costs, and approximately 10 cents to earnings in 2013; and is expected to add approximately $160 million to estimated 2013 net revenues. It also brings with it an experienced management team and sales force.
“We are excited about the opportunity to add the Snack Factory family of products to our growing portfolio of outstanding snack food brands,” said David V. Singer, CEO Snyder's-Lance. “We believe that the passion for quality and excellence at Snyder's-Lance will further enhance the success already achieved by these outstanding products. The team at Snack Factory has done an amazing job of developing such a successful brand with a loyal following. We look forward to bringing together our collective strengths as Snyder's-Lance continues to build an even stronger snack foods company. Snack Factory is truly a welcome addition, and we are certain that customers and consumers alike will be excited at the possibilities for this premium, unique line of great tasting products.”
Tom O'Rourke, CEO of Snack Factory, adds, “We couldn't be more excited for the future of Pretzel Crisps. Together with Snyder's-Lance, we can reach more consumers, continue to build exceptional brand equity, and bring more exciting innovation to the marketplace."
Source: Snyder’s-Lance Inc., Acquire Media