Campbell's is buying Snyder's

Campbell Soup is hungry for pretzels, chips and popcorn.Soup sales have lagged, so Campbell announced on Monda...

Posted: Dec 18, 2017 6:15 PM
Updated: Dec 18, 2017 6:15 PM

Campbell Soup is hungry for pretzels, chips and popcorn.

Soup sales have lagged, so Campbell announced on Monday that it's buying Snyder's-Lance for $50 a share in an all-cash deal valued at $4.9 billion. Snyder's-Lance makes snacks such as Snyder's of Hanover pretzels, Cape Cod and Kettle potato chips and Pop Secret popcorn.

Buying Snyder's-Lance will "dramatically transform Campbell, shifting our center of gravity," Campbell CEO Denise Morrison said in a statement.

Campbell already owns Pepperidge Farm, which makes Goldfish crackers and Milano cookies. But snacks currently account for just a third of Campbell's sales. Most of its other holdings are soup and sauce brands.

After the deal, snacks will make up nearly half of Campbell's sales.

Campbell is under pressure to broaden its offerings as food prices drop at grocery stores. Shares of Campbell are down 17% this year.

Related: No soup for you? Campbell plunges on poor sales

Soup sales have fallen 9% since last year, the company reported in November. A spat with Walmart over pricing and shelf space contributed to the drop. Campbell's share of the U.S. soup market has dropped seven percentage points over the last five years to 42%, according to research firm Euromonitor.

But snacks have been a bright spot for the company. Pepperidge Farm sales were up 3% last quarter during an otherwise lackluster summer.

In Snyder's, Campbell is getting is a hot snack food company whose sales have grown nearly 12% a year over the past five years. That has far outpaced the rest of the $89 billion U.S. snack industry.

Campbell is paying a 27% premium on Snyder's-Lance's stock price and is taking on more than $6 billion in debt to finance the purchase.

In addition to snacks, Campbell's also wants to expand fresh foods unit, which accounts for 12% of sales. Last week, Campbell completed a $700 million purchase for Pacific Foods, a company that makes organic soups and drinks.

Shares of Snyder's-Lance opened at record high Monday. Campbell ticked up 1%.

West Lafayette
Clear
75° wxIcon
Hi: 87° Lo: 71°
Feels Like: 75°
Kokomo
Clear
69° wxIcon
Hi: 87° Lo: 68°
Feels Like: 69°
Rensselaer
Overcast
73° wxIcon
Hi: 86° Lo: 68°
Feels Like: 73°
Fowler
Overcast
73° wxIcon
Hi: 83° Lo: 70°
Feels Like: 73°
Williamsport
Clear
72° wxIcon
Hi: 85° Lo: 70°
Feels Like: 72°
Crawfordsville
Broken Clouds
69° wxIcon
Hi: 84° Lo: 70°
Feels Like: 69°
Frankfort
Clear
67° wxIcon
Hi: 85° Lo: 69°
Feels Like: 67°
Delphi
Overcast
74° wxIcon
Hi: 88° Lo: 69°
Feels Like: 74°
Monticello
Overcast
74° wxIcon
Hi: 89° Lo: 69°
Feels Like: 74°
Logansport
Scattered Clouds
66° wxIcon
Hi: 85° Lo: 68°
Feels Like: 66°
Active Pattern Ahead
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 73287

Reported Deaths: 3036
CountyConfirmedDeaths
Marion15701725
Lake7496275
Elkhart480184
Allen3835163
St. Joseph342381
Hamilton2723104
Vanderburgh192213
Hendricks1871108
Cass17869
Johnson1741118
Porter129439
Clark120247
Tippecanoe118911
Madison94365
LaPorte89430
Howard88465
Kosciusko84712
Bartholomew78047
Marshall77422
Floyd77246
Monroe74630
Delaware71452
Dubois68712
Boone67246
Noble66329
Hancock64738
Vigo61910
Jackson5855
Warrick57930
LaGrange55710
Shelby54627
Grant52630
Dearborn49628
Morgan46734
Clinton4303
Henry37620
Wayne36810
White36110
Montgomery35221
Lawrence34227
Decatur33532
Harrison32723
Putnam2868
Miami2692
Scott26610
Daviess26420
Greene24634
Franklin24114
Jasper2342
DeKalb2304
Jennings22412
Gibson2214
Steuben2073
Ripley1997
Fayette1867
Carroll1852
Perry18412
Starke1777
Posey1700
Orange16924
Wabash1653
Fulton1642
Wells1622
Jefferson1602
Knox1510
Whitley1516
Washington1391
Tipton1379
Spencer1313
Huntington1223
Newton11810
Randolph1184
Clay1165
Sullivan1131
Adams962
Jay910
Owen871
Pulaski791
Rush764
Brown731
Fountain732
Blackford632
Ohio635
Benton610
Pike530
Parke511
Vermillion490
Switzerland460
Crawford440
Martin430
Union390
Warren221
Unassigned0202

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events