Snyder’s-Lance to acquire cracker maker Snack Factory

US-based snack food company Snyder’s-Lance has entered into an agreement to acquire Snack Factory, a producer of pretzel-shaped crackers, and certain affiliates for $340m in cash.

Snack Factory, based in New Jersey, US, manufactures thin, ?at pretzel-shaped crackers under the Pretzel Crisps brand.

The Pretzel Crisps range, which has a strong presence in the deli-bakery section of grocery stores, offers 110 calories per serving and is available in flavours such as Original, Garlic and Parmesan, Everything and Sesame.

The products are distributed nationally in grocery, mass merchandisers, club stores, and other channels.

The acquisition is expected to complement Snyder’s-Lance products such as Lance sandwich crackers, Snyder’s of Hanover pretzels and Cape Code kettle chips.

Snyder’s-Lance noted that the acquisition adds a rapidly growing, differentiated national core brand to its existing portfolio, and offers entry into the deli-bakery segment of grocery stores, a growing retail section for snacks.

Snyder’s-Lance chief executive officer David V Singer said the companies will seek to combine their collective strengths to build a stronger snack foods company.

Snack Factory chief executive officer Tom O’Rourke said that with Snyder’s-Lance, the company can reach more consumers, continue to build strong brand equity, and bring more innovation to the marketplace.

The deal is expected to add $0.02 to Snyder’s-Lance’s earnings per share, excluding transaction related costs in 2012, and to add $0.10 to earnings in 2013.

It is also expected to boost the company’s net revenues by $160m in 2013.

The transaction, which is subject to customary conditions, including receipt of required regulatory approvals, is likely to be completed by early fourth quarter of 2012.

Snyder’s-Lance, based in Charlotte, North Carolina, produces pretzels, sandwich crackers, potato chips, cookies, tortilla chips, restaurant style crackers, nuts and other snacks.