US-based snack food company Snyder's-Lance is in negotiations to divest Vista, its private-label cookies and crackers division, which is expected to fetch nearly $350m.
The move is part of Snyder's-Lance's plan to focus on its branded snacks business, and the company might use the sale proceeds to acquire more snack brands or invest in its existing snack business.
The company has appointed Bank of America to conduct the sale, which is likely to be completed by the end of 2012, reported Bloomberg citing people with knowledge of the matter.
Food companies such as ConAgra Foods, TreeHouse Foods and Ralcorp have expressed interest in acquiring the business, according to reports.
While ConAgra Foods has been expanding both its branded and private-label business through acquisitions, TreeHouse Foods and Ralcorp are involved in private-label food production.
Vista, which was acquired by Snyder's-Lance in 1979, produces private label cookies and crackers as well as the Vista brand of baked goods to retailers and wholesalers, and the division has annual earnings before interest, taxes, depreciation and amortisation of around $40m.
Earlier this month, Snyder's announced that its net income had more than doubled to $17.8m, while sales declined 3.6% to $406.6m.
Commenting on the results, Snyder's-Lance chief executive officer David V Singer had said that the company's growth continued to be driven by its core brands - Snyder's of Hanover pretzels, Lance sandwich crackers and Cape Cod kettle chips - and it would continue to focus on branded sales in the coming year.
In October 2012, Snyder's-Lance strengthened its branded snacks business by completing the acquisition of Snack Factory, a producer of Pretzel Crisps brand crackers, for $340m.
Snyder's-Lance, based in Charlotte, North Carolina, produces pretzels, sandwich and restaurant style crackers, potato chips, cookies, tortilla chips, nuts and other snacks.
