Campbell Soup Company Completes Transformative Acquisition
Campbell Soup Company has completed the $6.1 billion acquisition of Snyder’s-Lance to create a $10 billion business with nearly half of its annual net sales in the faster-growing snacks category. To unlock the power of the combined brand portfolio, and achieve both cost and potential revenue opportunities, Campbell is integrating the Pepperidge Farm and Snyder’s-Lance portfolios to create a unified snacking organisation in the US called Campbell Snacks.
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. Snyder’s-Lance reported $2.2 billion in net sales for the year ended December 30, 2017. With the addition of Snyder’s-Lance, snacking will now represent approximately 47% of Campbell’s annual net sales (previously 32 %). Campbell’s soup portfolio will represent approximately 26% of the company’s annual net sales.
Campbell expects to achieve approximately $170 million in cost synergies by end of fiscal 2022. Additionally, Campbell expects to achieve approximately $125 million of Snyder’s-Lance’s existing cost transformation program.
Denise Morrison, president and chief executive of Campbell Soup Company, says: “The combination of Campbell and Snyder’s-Lance creates a unique, diversified snacking portfolio of differentiated brands and a large variety of better-for-you snacks for consumers. I am excited about the combination and confident that it will create significant shareholder value through both revenue growth and cost synergies.”
