LNCE shares surged more than 7% on the news, sending the value of its stock to $50.06 per share. The agreement marks yet another example of how traditional food companies have been consolidating their own businesses as their sales have sunk and they have been unsuccessful in innovating in order to grow.
Before the deal was announced, Campbell’s shares were down 18% year-to-date. Plenty of the company’s segments have declined every year since 2015, including its simple meals and beverages segment, including its soup and V8 offerings.
“This acquisition will dramatically transform Campbell, shifting our center of gravity and further diversifying our portfolio into the faster-growing snacking category,” Snyder’s CEO Denise Morrison said in a statement Monday morning.
Campbell’s acquisition will bring a number of value brands to its fold, including Diamond Foods and Pop Secret popcorn. The addition of new snacks will help the company expand its footprint to a larger variety of different snack offerings.
Campbell acquired dressings, beverages and vegetable provider Bolthouse Farms for $1.55 billion back in 2012.
CPB stock gained nearly 0.3% on the news during the afternoon Monday.