Lance Buys Stateline Service Corp

Zacks

In order to strengthen its distribution network, Snyder's-Lance, Inc. (LNCE) recently acquired substantially all assets of Mass.-based snack food distributor, Stateline Service Corporation, for an undisclosed amount. Terms of the transaction were not disclosed.

Stateline distributes Snyder's-Lance’s branded products as well as several additional partner-brand product lines. Both the distribution networks will be merged, thus expanding Snyder's-Lance’s direct store delivery distribution network and allowing it to better serve its key retailers.

Snyder's-Lance manufactures markets and distributes a variety of branded and private-label snack foods and bakery products including sandwich crackers, pretzel crackers, potato chips, cookies, tortilla chips, restaurant-style crackers, nuts and other snacks.

The company currently owns four core brands namely, Snyder's of Hanover pretzels, Lance sandwich crackers, Cape Cod potato chips and Pretzel Crisps cracker. Pretzel Crisps was acquired in October last year as part of Snyder's-Lance’s acquisition of the Princeton, N.J.-based company, Snack Factory, from VMG Partners for $340 million. Pretzel Crisps is the world’s first pretzel-shaped low-calorie cracker.

Earlier this month, Snyder's-Lance reported dismal second-quarter 2013 results missing the Zacks Consensus Estimate for both revenues and earnings. However, both earnings and revenues grew 9.1% and 9.9%, respectively.

Snyder's-Lance carries a Zacks Rank #4 (Sell). Other food companies which are currently doing well include Pinnacle Foods Inc. (PF), Kraft Foods Group, Inc. (KRFT) and Dole Food Company Inc. (DOLE). All the three companies carry a Zacks Rank #2 (Buy).

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