Snyders-Lance focuses on branded snacks

Snyder's-Lance focuses on branded snacks

US snack group Snyder's-Lance has sold its private-label business in a US$430m deal that will enable it to focus on branded sales.

Shearer's Foods will purchase the own-label snack business, including two snack manufacturing facilities in Canada and the US.

"This transaction will allow Snyder's-Lance to focus entirely on its branded products by placing more resources to work on growth categories such as 'better for you' nutritional and premium snacks," Snyder's-Lance said in a statement.

BB&T Capital Markets analyst Brett Hundley suggested the move could also boost Synder's-Lance margins. "We believe that a sale of its PL business, combined with an improved business mix and further M&A, will help to improve operating margins to above 10% while unlocking equity value," he suggested.

Shares in the group were up almost 3% in morning trade in New York today (7 May).