Snyder's-Lance completes divestiture of Private Brands
Snyder's-Lance Inc., Charlotte, NC, completed the sale of its Private Brands business, along with two manufacturing facilities in the U.S. and Canada, to Shearer's Foods LLC, a leading provider of private-label snacks in Massillon, OH. The deal was first announced on May 7.
The selling price for Private Brands was $430 million, with after-tax proceeds of approximately $300 million. When combined with the recently completed acquisition of Baptista’s Bakery, the company expects an annualized reduction in net revenue of approximately $250 million and an initial reduction in operating margins of around 20 basis points, primarily due to stranded costs.
“This is an important step forward for Snyder's-Lance, as we dedicate our attention to our branded portfolio,” says Carl E. Lee Jr., president and CEO. “I want to thank all of our associates who have worked to make our Private Brands successful for many years and wish everyone the greatest of success in the future.”
Consistent with the company's strategy, the transactions will allow Snyder's-Lance to focus on its branded products by placing more resources to work on growth categories such as “better-for-you” and premium snacks.
Snyder's-Lance also announced the implementation of a Margin Improvement & Restructuring Plan to offset stranded costs that remain after the sale of Private Brands. The plan is designed to scale the company's operations appropriately with focus on branded products as well as its Direct Store Delivery (DSD) and Direct Sales networks.
Source: Snyder’s-Lance Inc., PR Newswire