REUTERS - Campbell Soup Co will buy Pretzels and Cape Cod chips maker Snyder's-Lance Inc for $4.87 billion as it looks to expand its snack business amid sagging soup sales.
Campbell said on Monday it would pay Snyder's shareholders $50 per share in cash.
The offer represents a 27 percent premium to Snyder's close on Wednesday, a day before CNBC first reported it had hired an investment bank to weigh a potential sale following an approach from Campbell.
The equity value of the deal is based on 97.46 million outstanding Snyder shares, according to Thomson Reuters data. Including debt the deal is valued at about $6 billion.
Campbell said it plans to finance the acquisition through a combination of long- and short-term debt of $6.2 billion.
Credit Suisse acted as lead financial adviser to Campbell in this transaction. Weil, Gotshal & Manges LLP acted as Campbell's legal counsel.
Goldman Sachs & Co LLC acted as lead financial adviser to Snyder's-Lance and Jenner & Block LLP acted as its legal counsel.
(Reporting by Uday Sampath in Bengaluru; Editing by Shounak Dasgupta)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app