US: Snack makers Lance, Snyder's of Hanover to merge
The merger will create a company to be called Snyder's-Lance
US snack maker Lance has signed an agreement to merge with pretzel firm Snyder's of Hanover.
The deal, announced today (22 July), will combine the two firms in a stock-for-stock merger of equals that will create a company to be called Snyder's-Lance.
"This transaction allows us to create a stronger company in a highly competitive industry and simultaneously create value for our shareholders," said David Singer, president and CEO of Lance.
In addition to brands including Lance, Snyder's of Hanover, Cape Cod and Grande, Snyder's-Lance will have a national distribution footprint including, Lance claimed, will be one of the largest Direct Store Delivery (DSD) networks in the US.
"Snyder's-Lance will have a broad array of leading snack food products supported by a strong national DSD system," Singer added.
Snyder's-Lance will have pro-forma combined net sales of around $1.6bn and adjusted EBITDA of around $170m. The combination is expected to generate more than $3m in annualised synergies.
"We are extremely pleased with the opportunity to combine two leading snack food companies in such a strategically compelling merger," said Carl Lee, president and CEO of Snyder's. "Combining our strengths in salty, cracker and cookie snacks creates the opportunity to be a focused specialty company with the scale to compete in high volume categories."
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