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.