by: Jayson Derrick, Benzinga Staff Writer
Monday's session featured two notable M&A deals in the food sector. Hershey Co HSY 0.68% agreed to acquire Amplify Snack Brands Inc BETR 71.21% in a deal which values the company at $12 billion. And Campbell Soup Company CPB 0.52% agreed to acquire Snyder's-Lance Inc LNCE 6.84% for $4.87 billion.
The acquisition fits in with Hershey's strategy of becoming an "innovative snacking powerhouse," Hershey said in a press release. Moreover, the acquisition gives the chocolate company exposure to a key sub-segment of the warehouse snack aisle.
Hershey expects the deal to be accretive to its financial targets, as Amplify operates mostly in the fast-growing "better for you" snack category.
Campbell Soup agreed to acquire Snyder's-Lance for $50 per share — a deal CNBC reported as being imminent last week.
The iconic soup company has seen sales of its simple meals and beverages segment, including soup and V8 beverages, fall on an annual basis since 2015, according to CNBC. But sales of its global biscuits and snacks division rose 3 percent in the recent quarter, so adding Snyder's snack brands is expected to bolster the stronger food unit and create a bigger foothold in convenience stores.
"This acquisition will dramatically transform Campbell, shifting our center of gravity and further diversifying our portfolio into the faster-growing snacking category," CEO Denise Morrison said in a Monday statement.
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