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Campbell Completes Acquisition of Snyder’s-Lance

  • Campbell’s baked snacks portfolio and Snyder’s-Lance’s
    complementary portfolio create diversified snacking leader
  • Significant value creation expected through synergies and
    operational excellence
  • Company forms new U.S. snacking unit: Campbell Snacks
  • Campbell Snacks leadership team will be led by Carlos
    Abrams-Rivera, formerly President, Campbell’s U.S. Biscuits and Snacks

CAMDEN, N.J.–(BUSINESS WIRE)–Mar. 26, 2018–
Campbell Soup Company (NYSE:CPB) today announced it has completed
the acquisition of Snyder’s-Lance, Inc. for $50 per share in an all-cash
transaction, which represents an enterprise value of approximately $6.1
billion.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180326005678/en/

A New Diversified Snacking Leader (Graphic: Business Wire)

A New Diversified Snacking Leader (Graphic: Business Wire)

“Snyder’s-Lance represents a strategic and transformative acquisition
for Campbell, creating a $10-billion company with nearly half of our
annual net sales in the faster-growing snacks category,” said Denise
Morrison, Campbell’s President and Chief Executive Officer. “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.”

Snyder’s-Lance Integration with Pepperidge Farm to Form Campbell
Snacks

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 organization in the U.S. called Campbell Snacks. The unit will
be led by Carlos Abrams-Rivera, former President, U.S. Biscuits and
Snacks, who will report to Luca Mignini, President, Global Biscuits and
Snacks.

“We carefully selected leaders from Campbell and Snyder’s-Lance to form
the Campbell Snacks leadership team based on their expertise and
understanding of how to leverage both businesses to support overall
growth and profitability across the enterprise,” said Abrams-Rivera.
“The Campbell Snacks team will focus on optimizing the value of our U.S.
snacks business to deepen our partnership with customers through the
power of the combined portfolio.”

The Campbell Snacks leadership team includes:

  • Chris Foley, Senior Vice President/Chief Marketing Officer, Campbell
    Snacks, will lead efforts to drive innovation and brand building
    across the expanded snacks portfolio. Foley joined Campbell in 1999.
  • To ensure end-to-end manufacturing excellence and a focus on value
    capture, Bill Livingstone, Vice President, Supply Chain,
    Snyder’s-Lance, will oversee supply chain operations at
    Snyder’s-Lance; and Paul Serra, Vice President, Supply Chain,
    Pepperidge Farm, will oversee supply chain operations at Pepperidge
    Farm. Livingstone previously was responsible for overall supply chain
    for U.S. Biscuits and Bakery for the past eight years. Serra served as
    general manager for Arnott’s Malaysia & Singapore business.
  • Cory Onell, has been appointed Vice President, Sales, Customer
    Development and DSD Operations for Campbell Snacks. He will oversee
    the Snyder’s-Lance Customer and Category Sales organization along with
    the Direct Store Delivery (DSD) operations at Pepperidge Farm and
    Snyder’s-Lance. Onell joined Pepperidge Farm in 2017 as Vice
    President, U.S. Sales and DSD Operations.
  • George Vindiola, Vice President, Research and Development, Campbell
    Snacks, will oversee product development and innovation for the
    combined portfolio. Vindiola joined Pepperidge Farm in 2016, bringing
    more than 20 years of research and leadership experience from
    Frito-Lay and PepsiCo/Frito-Lay.
  • Matt Wilken, Vice President, Strategy, Campbell Snacks, will
    accelerate business strategy across Campbell Snacks. Wilken has been
    with Snyder’s-Lance for the last seven years in business strategy.

Additional leaders have been named to oversee finance, legal,
information technology, human resources and communications.

Mignini said, “We have the insights and know-how in snacks to execute
and grow in this space. I am very confident that Carlos and the
expertise of the Campbell Snacks leadership team will continue to drive
momentum in the businesses and achieve the cost synergies we have
outlined. We are taking a disciplined approach to the integration of
Snyder’s-Lance to ensure its success.”

The New Campbell

Campbell’s diversified snacking portfolio enables the company to offer
real food options to millions of families who enjoy a wide range of
eating occasions throughout each day. The Campbell Snacks portfolio will
feature Pepperidge Farm’s iconic brands, including Goldfish and Milano,
along with Snyder’s-Lance’s well-known brands, such as Snyder’s of
Hanover
, Lance, Kettle Brand, KETTLE chips, Cape
Cod, Snack Factory Pretzel Crisps
, Emerald and Late July.

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. With the addition of
Snyder’s-Lance, snacking will now represent approximately 47 percent of
Campbell’s annual net sales (previously 32 percent). Campbell’s soup
portfolio will represent approximately 26 percent of the company’s
annual net sales.

Significant Value Creation Through Cost Synergies and Growth

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.

Based on the significance of the acquisition, Campbell has initiated a
systematic approach that engages both companies to quickly share key
learnings and best practices. Campbell will integrate key control
functions, including supply chain and quality, and finance.

Snyder’s-Lance reported $2.2 billion in net sales for the year ended
Dec. 30, 2017.

Campbell will discuss the impact of Snyder’s-Lance to its fiscal 2018
guidance when the company reports third-quarter earnings on May 18, 2018.

About Campbell Soup Company

Campbell (NYSE:CPB) is driven and inspired by our Purpose, “Real food
that matters for life’s moments.” We make a range of high-quality soups
and simple meals, beverages, snacks and packaged fresh foods. For
generations, people have trusted Campbell to provide authentic,
flavorful and readily available foods and beverages that connect them to
each other, to warm memories and to what’s important today. Led by our
iconic Campbell’s brand, our portfolio includes Pepperidge
Farm, Bolthouse Farms, Arnott’s, V8, Swanson, Pace, Prego, Plum, Royal
Dansk, Kjeldsens
, Garden Fresh Gourmet, Pacific Foods, Snyder’s
of Hanover, Lance, Kettle Brand, KETTLE Chips, Cape Cod, Snack Factory
Pretzel Crisps, Pop Secret, Emerald, Late July
and other brand
names. Founded in 1869, Campbell has a heritage of giving back and
acting as a good steward of the planet’s natural resources. The company
is a member of the Standard and Poor’s 500 and the Dow Jones
Sustainability Indexes. For more information, visit www.campbellsoupcompany.com
or follow company news on Twitter via @CampbellSoupCo.
To learn more about how we make our food and the choices behind the
ingredients we use, visit www.whatsinmyfood.com.

Forward-Looking Statements

This release contains “forward-looking statements” that reflect the
company’s current expectations about the impact of its future plans and
performance on the company’s business or financial results. These
forward-looking statements rely on a number of assumptions and estimates
that could be inaccurate and which are subject to risks and
uncertainties. The factors that could cause the company’s actual results
to vary materially from those anticipated or expressed in any
forward-looking statement include (1) changes in consumer demand for the
company’s products and favorable perception of the company’s brands; (2)
the risks associated with trade and consumer acceptance of product
improvements, shelving initiatives, new products and pricing and
promotional strategies; (3) the impact of strong competitive responses
to the company’s efforts to leverage its brand power with product
innovation, promotional programs and new advertising; (4) changing
inventory management practices by certain of the company’s key
customers; (5) a changing customer landscape, with value and e-commerce
retailers expanding their market presence, while certain of the
company’s key customers continue to increase their significance to the
company’s business; (6) the company’s ability to realize projected cost
savings and benefits from its efficiency and/or restructuring
initiatives; (7) the company’s ability to manage changes to its
organizational structure and/or business processes, including selling,
distribution, manufacturing and information management systems or
processes; (8) product quality and safety issues, including recalls and
product liabilities; (9) the ability to complete and to realize the
projected benefits of acquisitions, divestitures and other business
portfolio changes, including with respect to the Snyder’s-Lance
acquisition; (10) disruptions to the company’s supply chain, including
fluctuations in the supply of and inflation in energy and raw and
packaging materials cost; (11) the uncertainties of litigation and
regulatory actions against the company; (12) the possible disruption to
the independent contractor distribution models used by certain of the
company’s businesses, including as a result of litigation or regulatory
actions affecting their independent contractor classification; (13) the
impact of non-U.S. operations, including trade restrictions, public
corruption and compliance with foreign laws and regulations; (14)
impairment to goodwill or other intangible assets; (15) the company’s
ability to protect its intellectual property rights; (16) increased
liabilities and costs related to the company’s defined benefit pension
plans; (17) a material failure in or breach of the company’s information
technology systems; (18) the company’s ability to attract and retain key
talent; (19) changes in currency exchange rates, tax rates, interest
rates, debt and equity markets, inflation rates, economic conditions,
law, regulation and other external factors; (20) unforeseen business
disruptions in one or more of the company’s markets due to political
instability, civil disobedience, terrorism, armed hostilities, extreme
weather conditions, natural disasters or other calamities; and (21)
other factors described in the company’s most recent Form 10-K and
subsequent Securities and Exchange Commission filings. The company
disclaims any obligation or intent to update the forward-looking
statements in order to reflect events or circumstances after the date of
this release.

Source: Campbell Soup Company

Campbell Soup Company
INVESTOR CONTACT:
Ken
Gosnell, 856-342-6081
[email protected]
or
MEDIA
CONTACT:
Thomas Hushen, 856-342-5227
[email protected]