Snyder's of Hanover Inc., one of the largest makers of pretzels in the country, said it plans to combine with Lance Inc., a North Carolina snack food maker, in what the companies described as a "merger of equals."For Snyder's, based in Hanover, Pa., the merger is the second attempt to join forces with another snack maker in less than a year. In October, Snyder's announced a merger with Utz Quality Foods Inc., a potato chip maker in Hanover, which would've created a combined company with $800 million in sales.
But Snyder's and Utz gave up their plans a month later after they expected a long and costly review of the deal by the Federal Trade Commission.
The deal between Snyder's and Lance would create a larger company, with $1.6 billion in combined sales, the companies said. Shares of Lance, which trade on the Nasdaq stock exchange, were up more than 29 percent, to $20.77, in morning trading.
Snyder's, which is privately held, has 2,250 employees and had sales of $652 million in 2008. That same year, Lance had revenue of $852 million and profit of $17.7 million. In 2009, Lance's profit grew to $35.8 million on revenue of $918 million. Lance has 4,800 employees in the United State and Canada.
In the past two years, Lance has bought the Stella D'Oro and Archway brands.
Snyder's traces its history to 1909 and is known for its pretzels, but also makes other types of snack food such as potato chips. Lance, founded in 1913, is based Charlotte, N.C. and makes sandwich crackers, cookies and popcorn.
As part of the merger, existing Lance shareholders will receive a one-time $3.75 special cash dividend, the company said.
The new company would be called Snyder's-Lance. Snyder's current chairman, Michael A. Warehime, will serve as chairman of the new company. David V. Singer, current president and chief executive of Lance, will become the CEO of the new company.
The merger is subject to shareholder and federal regulatory approvals, the companies said.
www.baltimoresun.com
No comments:
Post a Comment