US-based snack company Snyder's-Lance has entered into an agreement to acquire Snack Factory, a manufacturer of pretzel-shaped crackers, for $340m in cash.
Snack Factory's owns Pretzel Crisps brand, which produces thin and flat crackers that are all natural and have multiple uses in snacking.
At 110 calories per serving, the brand offers flavors such as Original, Garlic and Parmesan, Everything and Sesame. The products are sold nationally in leading retailers across multiple channels in the US.
Snyder's-Lance chief executive officer David V Singer said the company looks forward to bringing together the collective strengths as it continues to build a stronger snack foods company.
Snyder's-Lance noted that the acquisition adds a fast growing differentiated national core brand to its existing portfolio and provides entry into the deli-bakery section of grocery stores, an attractive and growing retail area for snacks.
The deal is expected to add approximately $0.02 to Snyder's-Lance earnings per share, excluding transaction related costs, in 2012 and approximately $0.10 to earnings in 2013. It is also likely to add approximately $160m to estimated 2013 net revenues.
The transaction, which is subject to customary conditions, including receipt of required regulatory approvals, is expected to be completed early in fourth quarter.
