Campbell Soup Co. said it has completed its takeover of North Carolina-based snack maker Snyder's-Lance Inc. in a deal valued at an estimated $6.1 billion.
Campbell, which purchased Snyder's-Lance for $50 per share in cash, is forming a new U.S. snacks unit called Campbell Snacks, which will integrate the newly acquired business and Pepperidge Farm Inc. It will be led by Carlos Abrams-Rivera, former president of U.S. biscuits and snacks.
"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," said Campbell President and CEO Denise Morrison.
Campbell expects to achieve about $170 million in cost synergies by the end of fiscal 2022 due to the acquisition, and roughly $125 million of Snyder's-Lance's existing cost transformation program.
The company said it will discuss the impact of Snyder's-Lance to its fiscal 2018 guidance during its fiscal third-quarter earnings report May 18.
Snyder's-Lance reported $2.2 billion in net sales for the year ended Dec. 30, 2017, according to Campbell.
Campbell reported Feb. 16 that its net earnings increased year over year to $560 million for the six months ending Jan. 28, while net sales for the period dropped to $4.34 billion.