Campbell Takes Ownership of Snyder’s-Lance
CAMDEN, N.J. — Campbell Soup Co. has now taken ownership of Snyder’s-Lance Inc.
As part of the $6.1-billion deal, Campbell acquired Snyder’s-Lance for $50 per share in an all-cash transaction. The companies announced the deal in December.
"Snyder's-Lance represents a strategic and transformative acquisition for Campbell, creating a $10-billion company with nearly half of our annual net sales in the faster-growing snacks category," said Denise Morrison, Campbell president and CEO.
"I am excited about the combination and confident that it will create significant shareholder value through both revenue growth and cost synergies," she added.
To unlock the power of the combined brand portfolio, Campbell will integrate the Pepperidge Farm and Snyder’s-Lance portfolios to create a unified U.S. snacking business called Campbell Snacks. The unit will be led by Carlos Abrams-Rivera, former president, U.S. Biscuits and Snacks, who will report to Luca Mignini, president, Global Biscuits and Snacks.
“We carefully selected leaders from Campbell and Snyder's-Lance to form the Campbell Snacks leadership team based on their expertise and understanding of how to leverage both businesses to support overall growth and profitability across the enterprise,” said Abrams-Rivera. “The Campbell Snacks team will focus on optimizing the value of our U.S. snacks business to deepen our partnership with customers through the power of the combined portfolio.”
The Campbell Snacks leadership team includes:
- Chris Foley, senior vice president/chief marketing officer, will lead efforts to drive innovation and brand building across the expanded snacks portfolio. Foley joined Campbell in 1999.
- Bill Livingstone, vice president, Supply Chain, Snyder’s-Lance, will ensure end-to-end manufacturing excellence and focus on value capture. Livingstone previously was responsible for overall supply chain for U.S. Biscuits and Bakery for the past eight years.
- Paul Serra, vice president, Supply Chain, Pepperidge Farm, will oversee supply chain operations at Pepperidge Farm. Serra served as general manager for Arnott’s Malaysia & Singapore business.
- Cory Onell, has been appointed Vice President, Sales, Customer Development and DSD Operations. He will oversee the Snyder’s-Lance Customer and Category Sales organization along with the Direct Store Delivery (DSD) operations at Pepperidge Farm and Snyder’s-Lance. Onell joined Pepperidge Farm in 2017 as vice president, U.S. Sales and DSD Operations.
- George Vindiola, vice president, Research and Development, Campbell Snacks, will oversee product development and innovation for the combined portfolio. Vindiola joined Pepperidge Farm in 2016, bringing more than 20 years of research and leadership experience from Frito-Lay and PepsiCo/Frito-Lay.
- Matt Wilken, vice president, Strategy, Campbell Snacks, will accelerate business strategy across Campbell Snacks. Wilken has been with Snyder’s-Lance for the last seven years in business strategy.
"We have the insights and know-how in snacks to execute and grow in this space. I am very confident that Carlos and the expertise of the Campbell Snacks leadership team will continue to drive momentum in the businesses and achieve the cost synergies we have outlined," Mignini commented. "We are taking a disciplined approach to the integration of Snyder's-Lance to ensure its success."
The Campbell Snacks portfolio will feature Pepperidge Farm’s iconic brands, including Goldfish and Milano, alongside Snyder’s-Lance’s well-known brands like Snyder’s of Hanover, Lance, Kettle Brand, KETTLE chips, Cape Cod, Snack Factory Pretzel Crisps, Emerald and Late July.
Campbell's global baked snacks product portfolio, including its Pepperidge Farm, Arnott’s and Kelsen businesses, generated approximately $2.5 billion in net sales in fiscal year 2017. With the addition of Snyder’s-Lance, snacking will now represent approximately 47 percent of Campbell’s annual net sales, which were previously 32 percent. Campbell’s soup portfolio will represent approximately 26 percent of the company’s annual net sales, the company reported.
Snyder’s-Lance reported $2.2 billion in net sales for the year ended Dec. 30, 2017.
Campbell expects to achieve approximately $170 million in cost synergies by end of fiscal 2022, in addition to approximately $125 million of Snyder’s-Lance’s existing cost transformation program.