Late on Friday, stocks of Campbell Soup and Snyder’s-Lance rose after reports that Campbell Soups was in ‘advanced talks’ to buy the pretzel and potato chip manufacturer.
As the US consumer market cools off on soups, pressure is mounting on the $15 billion packaged-food giant to seek acquisitions to preserve profits and its considerable retail presence. In November, Campbell cut its 2018 profit forecast.
Earlier this week, Campbell closed on its $700 million purchase of organic broth maker Pacific Foods of Oregon. The acquisition of Snyder-Lance is projected to be one of Campbell’s largest deals ever, with experts speculating the company may pay too much for Snyder-Lance, that recently delivered third-quarter earnings that fell short of estimates.
On Thursday, it was reported that Snyder’s-Lance had hired an investment bank to weigh a potential sale. There were also reports the company had seen interest from another party.
Snyder’s-Lance’s brands include Cape Cod chips, Pop-Secret popcorn, Stella D’oro cookies and Snyder’s of Hanover pretzels while Campbell manufactures canned soups, Goldfish crackers, V8 juices and Prego pasta sauces.