Back to top

Analyst Blog

Snyder's-Lance, Inc. (LNCE - Snapshot Report) recently announced that it has signed a definitive agreement to take over the Princeton, New Jersey-based company Snack Factory, including its premium cracker product, Pretzel Crisps. According to the agreement, Snyder's-Lance will be paying $340 million in cash for the acquisition.

The transaction will add Snack Factory’s popular brand Pretzel Crisps, which is the world’s first pretzel-shaped low calorie cracker, to Snyder's-Lance portfolio. The deal corresponds well with Snyder's-Lance’s growth strategy of building a portfolio of premium and differentiated core brands.

Snyder's-Lance currently owns three core brands; Snyder's of Hanover Pretzels, Lance Sandwich Crackers, and Cape Cod Potato Chips. Pretzel Crisps will become the fourth core brand of Snyder's-Lance. The deal will also introduce the snack food company to the fast growing deli-bakery section of grocery stores, where Pretzel Crisps has captured a significant share.

Pretzel Crisps is a premium snack that is baked and made from natural ingredients. It carries only 110 calories per serving and is available in Original, Garlic and Parmesan, Everything and Sesame flavors.

The transaction is expected to close in the earlier part of the fourth quarter. It will be accretive to Snyder's-Lance’s 2012 earnings by 2 cents and to 2013 earnings by 10 cents. Moreover, it will boost Snyder's-Lance’s 2013 revenue by $160 million. The purchase consideration includes about $60 million of net present value of future tax benefits. The closing of the deal is subject to regulatory approvals.

Our Recommendation

We currently have a Neutral recommendation on Snyder's-Lance. The stock carries a Zacks #3 Rank (a short-term ‘Hold’ rating).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.37 +5.00%
CHYRONHEGO… CHYR 2.85 +4.78%
VASCO DATA… VDSI 14.72 +4.32%
RF MICRO DE… RFMD 12.27 +4.29%
ERBA DIAGNO… ERB 3.70 +2.49%