Campbell Soup to buy Snyder’s for $50 per share in cash
Campbell Soup Co (CPB) to buy Pretzels and Cape Cod chips maker Snyder’s-Lance Inc (LNCE) for $4.87 billion or $50 per share in cash.
The offer represents a 27 percent premium to Snyder’s close on Wednesday, a day before CNBC first reported that the company had hired an investment bank to weigh a potential sale following an approach from Campbell.
Snyder’s-Lance’s brands include Snyder’s of Hanover pretzels, KETTLE chips, Cape Cod and Pop Secret. Snyder’s-Lance shares had soared 19% over the past two sessions amid reports that Campbell was in advanced talks to buy the company.
Campbell plans to finance the deal with debt, and said it would suspend share buybacks to pay the debt down.
Campbell said the deal, which is expected to close early in the second quarter of 2018, should add to adjusted earnings per share in fiscal 2019.
CPB closed at $49.59. LNCE closed at $46.79.
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