Snyder’s-Lance to sell Private Brands and two manufacturing facilities for $430m

US-based snack maker Snyder’s-Lance has signed an agreement to sell its Private Brands business and two manufacturing facilities in the US and Canada to private label snacks producer Shearer’s Foods for $430m.

The deal is in line with Snyder’s-Lance’s plan to focus on its branded products by placing more resources on growth categories such as ‘better for you’, nutritional and premium snacks.

In order to strengthen these growth platforms, the company will leverage its incremental product development, innovation, marketing and one of the largest direct store delivery (DSD) networks in the US.

The transaction, which is subject to regulatory approvals, is expected to be completed in the second quarter of 2014.

Snyder’s-Lance president and CEO Carl Lee Jr said that in recent years the firm has 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," Lee added.

BofA Merrill Lynch acted as transaction advisor to Snyder’s-Lance, while K&L Gates acted as legal counsel.

Headquartered in Massillon, Ohio, Shearer’s Foods produces private label snacks such as cooked potato chips, traditional potato chips, tortilla chips, rice crisps, cheese curls and other extruded snacks, and whole grain chips.

It has six 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.

Snyder’s-Lance manufactures and markets snack foods such as pretzels, sandwich crackers, pretzel crackers, potato chips and cookies in the US and internationally.

The company has facilities in North Carolina, Pennsylvania, Iowa, Indiana, Georgia, Arizona, Massachusetts, Florida, Ohio and Ontario, Canada.