Campbell Soup Company is to purchase snacking company Snyder’s-Lance for $50.00 per share in an all-cash transaction that will cost in the region of $5 billion.

The acquisition, which has been approved by the boards of directors of both companies, will assist Campbell in expanding its portfolio of leading snacking brands. Snyder’s-Lance has leading market positions in snacking categories including pretzels, sandwich crackers, kettle chips, deli snacks and organic and natural tortilla chips.

The agreement represents a premium of approximately 27 per cent to Snyder’s-Lance’s closing stock price as of December 13th 2017, a day prior to the first reports of a potential sale to Campbell. It is estimated that the combined portfolio creates a snacking platform with approximately $4.7bn net sales on a pro forma basis and Campbell’s annual net sales are expected to exceed $10bn.