Campbell Soup (NYSE:CPB) will be buying the snacks company Snyder’s-Lance (NASDAQ:LNCE) for $4.87 billion. This is the largest deal that Campbell has ever made.
The reason behind this deal is likely Campbell attempting to regain some of its market share that has dropped off, like many others in the food industry. Traditional food companies have been struggling to grow, but are seeing opportunity in the snacking sector.
Campbell’s stock has been down 18% this year, but the company is hoping this deal will help to turn things around. Campbell’s CEO Denise Morrison believes that “this acquisition will dramatically transform Campbell, shifting [the company’s] center of gravity and further diversifying [Campbell’s] portfolio into the faster-growing snacking category.”
Previously, snack sales contributed to 31% percent of Campbell’s sales; with the addition now of Snyder’s-Lance’s snack brands, that should increase to 46%.
Featured Image: depositphotos/alexeynovikov
