US-based snack food company Snyder's-Lance has completed the acquisition of Snack Factory, a producer of pretzel-shaped crackers, for $340m in cash from private equity firm VMG Partners.
The definitive agreement to acquire Snack Factory was announced by Snyder's-Lance on 5 September 2012.
Snack Factory, based in New Jersey, US, manufactures thin and flat pretzel-shaped crackers under Pretzel Crisps brand.
The Pretzel Crisps range, which has a strong presence in the deli-bakery section of grocery stores, offers 110 calories per serving and is available in flavours such as Original, Garlic and Parmesan, Everything and Sesame.
These products are distributed nationally to grocery outlets, mass merchandisers, club stores, and other channels.
The acquisition is expected to complement Snyder's-Lance products, such as Lance sandwich crackers, Snyder's of Hanover pretzels and Cape Code kettle chips.
Snyder's-Lance noted that the acquisition offers entry into the deli-bakery segment of grocery stores, a growing retail section for snacks.
At the time of acquisition agreement, Snack Factory chief executive officer Tom O'Rourke said that with Snyder's-Lance, the company could reach more consumers, continue to build strong brand equity, and bring more innovation to the marketplace.
The deal is expected to add $0.02 to Snyder's-Lance's earnings per share, excluding transaction related costs in 2012, and to add $0.10 to share earnings in 2013.
It is also expected to boost the company's net revenues by $160m in 2013.
Snyder's-Lance, based in Charlotte, North Carolina, produces pretzels, sandwich and restaurant style crackers, potato chips, cookies, tortilla chips, nuts and other snacks.
VMG Partners, headquartered in San Francisco and Los Angeles, US, is an investor in branded consumer products companies in the lower middle market, and its target industries include food, beverage, wellness, pet and household products, and personal care and lifestyle brands.
