Campbell Soup Co (NYSE: CPB) is reported to be in advanced talks to acquire snacks maker Snyder‘s-Lance Inc (NASDAQ: LNCE) a deal which could be announced as early as next week.
The deal, if consummated, could value the Pretzels and Cape Cod chips maker at about $50 per share, which would value Snyder’s at about $4.87 billion.
The offer represents a 27% premium to Snyder’s close on Wednesday, a day before reports came out from various media that the company had hired an investment bank to weigh a potential sale following an approach from Campbell.
Snyder’s shares, which hit a record-high of $47.56 in regular trading, approached noon ET at $49.89, an improvement of $3.10, or 6.6%, to $49.89.
Campbell’s push into snacks comes as the company struggles with declining soup sales in the United States and competition from private label brands.
The deal underscores the drive for food industry consolidation as traditional food companies watch their sales drop and struggle to create growth or innovation on their own. It points to the opportunity they see in snacks, appealing to the increasing number of people who eat and shop on the go.
Campbell's baked snacks generated roughly 31% of Campbell's sales in fiscal 2017. Adding Snyder's-Lance's snack brands will bring that proportion up to roughly 46% of Campbell's annual net sales.
Campbell acquired dressing, beverage and vegetable company Bolthouse Farms in 2012 for $1.55 billion. This month, it completed its $700 million acquisition of Pacific Foods.
Campbell stock gained 26 cents to $49.85.
