Inc. has entered into an agreement to acquire the private label snack business from Snyder’s-Lance, Inc., Charlotte, N.C., for $430 million. Two manufacturing plants, one in Burlington, Iowa, and the other in Ontario, will be a part of the transaction.Shearer’s Foods is a private label snack manufacturer. The company has six manufacturing plants in Arkansas, Ohio, Oregon, Texas and Virginia. Products manufactured by the company include several snack chip varieties and extruded snacks.
Shearer’s is owned by the private equity firm Wind Point Partners, Toronto. In April, the company acquired Medallion Foods, Newport, Ark., from ConAgra Foods, Inc., Omaha, for $33.5 million. Medallion is a manufacturer of snack chips and extruded snacks items.
“This transaction is an important step forward for Snyder’s-Lance as we dedicate our attention to our branded portfolio,” said Carl E. Lee Jr., president and chief executive officer of Snyder’s-Lance. “Over the past several years, we have been building operational and branded capabilities which provide an exceptional platform for accelerating growth. Private brands has performed well over that time and is now in a position where a new, private brands centric owner can build on this momentum and take it to new levels.
“Looking forward for Snyder’s-Lance, we believe focusing more completely on our branded products will create better long-term shareholder value as we grow organically through product innovation and the acquisition of additional core brands. We’ll continue to leverage our strong national D.S.D. network, fast growing Direct Sales team, excellent marketing and brand building as well as our strong balance sheet.”
