CAMDEN, N.J. — Campbell Soup Co. has completed the acquisition of Snyder’s-Lance, Inc. for approximately $6.1 billion. The Snyder’s-Lance portfolio of products will be integrated along with Pepperidge Farm in the United States to create a unified snacking unit called Campbell Snacks.
“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, president and chief executive officer of Campbell Soup. “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.”
Campbell Snacks will be led by Carlos Abrams-Rivera, who most recently was president of U.S. Biscuits and Snacks. He will report to Luca Mignini, president of Global Biscuits and Snacks.
Speaking to Baking Business following the announcement, Mr. Abrams-Rivera said he is “energized” about the completion of the acquisition and the creation of the snacking unit.
“This is just the beginning of our journey,” he said, noting that the transaction has generated excitement throughout the company. He added that the two companies bring together many years of experience and the focus in the short term will be on driving investment in brands and people.
Mr. Abrams-Rivera said Campbell Soup was attracted to Snyder’s-Lance for two key reasons: culture and capabilities.
“We saw how they go to market and build businesses,” he said. “It is a great complement to what we have going on.”
Longer term, Mr. Abrams-Rivera said he sees Snyder’s-Lance fitting in nicely with Campbell Soup’s “real food philosophy.” He expects to take the learnings from Campbell Soup, incorporate them into the brands of Snyder’s-Lance and drive it across the entire U.S. snacks portfolio.
“This is a really big transformation,” he said.
As part of the transformation, Campbell Soup has 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 company. Mr. Abrams-Rivera said the Campbell Snacks team will focus on optimizing the value of its U.S. snacks business to deepen its partnership with customers.
In addition to Mr. Abrams-Rivera, other members of the Campbell Snacks leadership team include:
- Chris Foley, senior vice-president and chief marketing officer. Mr. Foley will lead efforts to drive innovation and brand building across the expanding snacks portfolio.
- Bill Livingstone, vice-president of supply chain, Snyder’s-Lance. Mr. Livingstone previously was responsible for overall supply chain for U.S. Biscuits and Bakery for the past eight years.
- Paul Serra, vice-president of supply chain, Pepperidge Farm. Mr. Serra most recently was general manager for Arnott’s Malaysia and Singapore business.
- Cory Onell, vice-president of sales, customer development and D.S.D. operations. He will oversee the Snyder’s-Lance customer and category sales organization along with the D.S.D. operations at Pepperidge Farm and Snyder’s-Lance.
- George Vindiola, vice-president of research and development. Mr. Vindiola will oversee product development and innovation for the combined portfolio.
- Matt Wilken, vice-president of strategy. Mr. Wilken has been with Snyder’s-Lance for the past seven years in a business strategy role. He will accelerate business strategy across the Campbell Snacks business.
“We have the insights and know-how in snacks to execute and grow in this space,” Mr. Mignini said. “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.”
With the addition of Snyder’s-Lance, snacks now will represent approximately 47% of Campbell Soup’s annual net sales, up from 32% before the acquisition. Campbell Soup’s soup portfolio will represent approximately 26% of the company’s annual net sales.The company said it expects to achieve about $170 million in cost synergies by the end of fiscal 2022 and about $125 million of Snyder’s-Lance’s existing cost transformation program.