US: Jobs to go as Snyder's-Lance adjusts after PL sale
Snyder's-Lance sold private-label business for US$430m
US snack group Snyder's-Lance has warned of "headcount reductions" as it adapts its operations after the disposal of its private-label business.
The company said it wanted to "offset stranded costs" after the sale of its own-label arm to fellow US snack firm Shearer's Foods, which was finalised yesterday (30 June).
Snyder's-Lance said it wanted to "scale the company's operations appropriately with focus on branded products as well as the direct store delivery and direct sales networks".
The deal to sell its private-label arm coincided with a move to boost its branded business through the takeover of baked snacks firm Baptista's Bakery, an acquisition the company sealed two weeks ago.
"Snyder's-Lance has increased its operating margin run rate by 140 basis points over the past 24 months and is moving quickly to attack these stranded costs while working to further expand margins," it said. "Savings are expected to come from a combination of operational initiatives and headcount reductions."
The Lance crackers maker said it expects the move will generate annualised cost savings of US$22-25m, which will be realised over the next year, starting in the third quarter.
The group did not disclose further detail on how many or what type of jobs would be affected. The company said it would provide "more details and specific goals" when it announces its second-quarter results next month. It did not respond to a request for further comment.
Snyder’s-Lance, Inc. (Snyder’s) manufactures and markets a variety of snack food products such as sandwich crackers, pretzels, kettle chips, pretzel crackers, cookies, potato chips, tortilla chips, ot...
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