Campbell Soup buying snack company for nearly $5 billion

Multiple media outlets have reported that Campbell’s Soup is acquiring snack food maker Snyder’s-Lance, which owns brands such as Diamond Foods and Pop Secret popcorn.

The deal, which CNBC reports is valued at $50 a share, will total $4.89 billion dollars.

“This acquisition will dramatically transform Campbell, shifting our center of gravity and further diversifying our portfolio into the faster-growing snacking category,” said Campbell CEO Denise Morrison in a statement Monday, Dec. 18.

USA Today reported Campbell’s stock, before news of its plans to acquire Snyder’s broke, was down roughly 18 percent during the past year. Specifically, sales in its simple meals and beverages segment, including soup and V8 beverages, have fallen year after year since 2015 while sales in its l biscuits and snacks division, including Pepperidge Farm Goldfish and Milano cookies, rose 3 percent in the most recent quarter.

Diane Shand, senior director of corporate ratings at S&P Global also told CNBC that Campbell has been focusing on growing their snacking business.

“The consumer is much more into snacking than eating three meals a day. Snacking is one of the better growing sectors in the industry,” she said.

This acquisition follows’ Campbell’s $700 million purchase earlier this year of organic broth and soup maker Pacific Foods.