Synder's-Lance announces agreement to sell Private Brands division and two manufacturing facilities in US and Canada to Shearer's Foods for US$430M; transaction expected to close in Q2
CHARLOTTE, North Carolina
May 7, 2014
– - Allows Snyder's-Lance to focus its attention to branded sales growth
- Manufacturing facilities in Burlington, Iowa and Ontario, Canada included in the sale
Snyder's-Lance, Inc. (LNCE) ("Snyder's-Lance") today announced a definitive agreement has been signed to sell Private Brands along with two manufacturing facilities in the U.S. and Canada to Shearer's Foods, LLC ("Shearer's"), a leading provider of private label snacks headquartered in Massillon, OH. The agreed upon sales price is $430 million. Consistent with the Snyder's-Lance Strategic Plan, this transaction will allow Snyder's-Lance to focus entirely on its branded products by placing more resources to work on growth categories such as "better for you," nutritional and premium snacks. These growth platforms will benefit from incremental product development, innovation, marketing and one of the largest Direct Store Delivery ("DSD") networks in the United States.
"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. "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 DSD network, fast growing Direct Sales team, excellent marketing and brand building as well as our strong balance sheet. I want to especially thank all of our associates who have worked to make our Private Brands successful for many years, and wish everyone the greatest of success in the future. The operating philosophies of Shearer's are very similar to Snyder's-Lance, and we feel we have found a great home with excellent potential for our people."
Completion of the transaction is subject to regulatory approvals and Shearer's obtaining financing for the transaction as well as customary closing conditions and is expected to close in the second quarter of 2014.
BofA Merrill Lynch acted as transaction advisor to Snyder's-Lance and K&L Gates LLP acted as legal counsel.
Financial Community Meeting and Conference Call
In compliance with applicable regulations, management will discuss this transaction, other transactions and first quarter 2014 earnings results during the previously scheduled Snyder's-Lance First Quarter Earnings Call, which is scheduled to begin at 9:00am eastern time on Thursday, May 8, 2014. The conference call and accompanying slide presentation will be webcast live through the Investor Relations section of the Snyder's-Lance website, www.snyderslance.com. In addition, the slide presentation will be available to download and print approximately 30 minutes before the webcast at www.snyderslance.com. To participate in the conference call, the dial-in number is (844) 830-1960 for U.S. callers or (315) 625-6883 for international callers. A continuous telephone replay of the call will be available between 3:00pm on May 8 and midnight on May 15. The replay telephone number is (855) 859-2056 for U.S. callers or (404) 537-3406 for international callers. The replay access code is 35042167. Investors may also access a web-based replay of the conference call at www.snyderslance.com.
About Snyder's-Lance, Inc.
Snyder's-Lance, Inc., headquartered in Charlotte, NC, manufactures and markets snack foods throughout the United States and internationally. Snyder's-Lance's products include pretzels, sandwich crackers, pretzel crackers, potato chips, cookies, tortilla chips, restaurant style crackers, nuts and other snacks. Snyder's-Lance has manufacturing facilities in North Carolina, Pennsylvania, Iowa, Indiana, Georgia, Arizona, Massachusetts, Florida, Ohio and Ontario, Canada. Products are sold under the Snyder's of Hanover®, Lance®, Cape Cod®, Snack Factory® Pretzel Crisps®, Krunchers!®, Tom's®, Archway®, Jays®, Stella D'oro®, Eatsmart™, O-Ke-Doke®, Quitos™ and other brand names along with a number of private label and third party brands. Products are distributed nationally through grocery and mass merchandisers, convenience stores, club stores, food service outlets and other channels. LNCE-E
About Shearer's Foods, LLC
Shearer's Foods, LLC is a customer-centric, values-based organization headquartered in Massillon, Ohio. Shearer's Foods is a leading national contract manufacturing and private label supplier in the snack industry in North America. Shearer's Foods has six state-of-the-art, geographically diverse manufacturing facilities in Ohio, Texas, Arkansas, Oregon, and Virginia, including one of the industry's first Leadership in Energy and Environmental Design platinum certified facilities in Massillon, Ohio. The Company is known for producing the highest quality snacks in assorted flavors and sizes, including kettle cooked potato chips, traditional potato chips, tortilla chips, rice crisps, cheese curls and other extruded snacks, and whole grain chips.