CHARLOTTE, N.C. -- Snyder's-Lance Inc. has entered into a definitive agreement to acquire Snack Factory LLC and certain affiliates for $340 million in cash. This includes approximately $60 million of net present value of future tax benefits.
Snyder's-Lance said that it expects to close the transaction early in the fourth quarter. The completion of the transaction is subject to customary conditions, including receipt of required regulatory approvals.
The deal adds a "fast-growing differentiated national core brand" to Snyder-Lance's existing portfolio, the company said. And it provides entry into the deli-bakery section of grocery stores, an attractive and growing retail area for snacks.
The transaction brings an experienced management team and sales force who can provide new marketing and sales abilities to augment the company's current expertise, it added.
As the world's first pretzel-shaped cracker, Snack Factory's Pretzel Crisps are thin, flat crackers that are all natural and have multiple uses in snacking.
At 110 calories per serving, the line features flavors such as Original, Garlic and Parmesan, Everything and Sesame. The products are sold nationally in leading retailers across multiple channels, and have developed a passionate following with consumers looking for a unique snack that's great on its own while also being perfect for dips, spreads and other toppings.
"We are excited about the opportunity to add the Snack Factory family of products to our growing portfolio of outstanding snack food brands," said David V. Singer, CEO of Snyder's-Lance. "We believe that the passion for quality and excellence at Snyder's-Lance will further enhance the success already achieved by these outstanding products. The team at Snack Factory has done an amazing job of developing such a successful brand with a loyal following. We look forward to bringing together our collective strengths as Snyder's-Lance continues to build an even stronger snack foods company. Snack Factory is truly a welcome addition, and we are certain that customers and consumers alike will be excited at the possibilities for this premium, unique line of great tasting products."
Tom O'Rourke, CEO of Snack Factory, said, "We couldn't be more excited for the future of Pretzel Crisps. Together with Snyder's-Lance, we can reach more consumers, continue to build exceptional brand equity and bring more exciting innovation to the marketplace."
Kara Cissell-Roell, managing director of VMG Partners, said, "When founders Warren and Sara Wilson selected VMG as their strategic partner in 2009, we all recognized Pretzel Crisps as an innovative brand with enormous potential. The Snack Factory team accelerated consumer trial and awareness of the brand and won the hearts of a passionate consumer base. I am extremely excited to see the next phase of Pretzel Crisps remarkable success story as part of the Snyder's-Lance family of brands."
Snack Factory, Princeton, N.J., was founded by snack food pioneers Sara and Warren Wilson in 2004. It distributes its products nationally in grocery, mass merchandisers, club stores and other channels.
Snyder's-Lance, Charlotte, N.C., manufactures and markets snack foods throughout the United States and internationally. Its products include pretzels, sandwich crackers, potato chips, cookies, tortilla chips, restaurant style crackers, nuts and other snacks. It sells products under the Snyder's of Hanover, Lance, Cape Cod, Krunchers!, Tom's, Archway, Jays, Stella D'oro, O-Ke-Doke and Grande brands along with a number of private-label and third-party brands. The company distributes products nationally through grocery and mass merchandisers, convenience stores, club stores, foodservice outlets and other channels.