The companies did not reveal details of the transaction, except that shareholders of each company will hold approximately 50 percent of the newly formed Snyder’s-Lance, with the deal set to be completed in the fall, subject to approval from regulators and shareholders. Pretzel maker Snyder’s and sandwich cracker maker Lance said they expect the new company to generate about $30m annually in synergies. For the year ended June 26, the two companies had combined net sales of about $1.6bn, and operating earnings of $170m, they said.
Lance president and CEO, David Singer, said: "This transaction allows us to create a stronger company in a highly competitive industry and simultaneously create value for our shareholders. Snyder's-Lance will have a broad array of leading snack food products supported by a strong national DSD [direct store delivery] system.”
President and CEO of Snyder's, Carl Lee, said: "We are extremely pleased with the opportunity to combine two leading snack food companies in such a strategically compelling merger. Combining our strengths in salty, cracker and cookie snacks creates the opportunity to be a focused specialty company with the scale to compete in high volume categories.”
Lee added that he sees opportunities to grow revenue through the Snyder’s-Lance Direct Store Delivery (DSD) network, expected to be one of the largest in the country post-merger.
“In addition, we believe there are significant synergies available in areas including purchasing, production, distribution and other areas,” he said.
Snyder’s-Lance will be based in Charlotte, North Carolina, where Lance is currently based, but will also have executive offices in Hanover, Pennsylvania, where Snyder’s is based. Its 16-member board will include eight directors of the current Lance board, and seven directors of the Snyder’s board, with an independent director to be elected after the deal is closed.
Michael Warehime, current Snyder's chairman, is due to become chairman of the board at Snyder’s-Lance, and W. J. Prezzano, current Lance chairman, will serve as lead independent director. Lance president and CEO David Singer will become CEO of Snyder's-Lance. Current Snyder's president and CEO Carl Lee will become president and CEO, and Rick Puckett, currently Lance executive vice president and CFO, will become executive vice president and CFO of the combined company.
Commenting on the merger, Puckett said: “We believe there are significant opportunities for our new company to grow organically and through acquisitions.”