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Campbell Soup shares climbed 10% on Monday following a New York Post report that the company was considering selling to Kraft Heinz. The report comes three months after Campbell Soup bought Snyder's Lance.
Kraft Heinz, trained at Heinz's purchase by Kraft in 2015, "is very interested in Campbell's purchase," the Post reported, citing a source close to the situation. Another possible buyer is General Mills, the Post reported.
In a May 18 earnings announcement, Mr. Campbell stated that he is conducting a strategic review of "all aspects of our strategic plans and the composition of our portfolio". The exam is underway and should be completed this summer. A spokesman said the company would not speculate on the outcome of the review or on rumored buyers.
A potential buyout comes amidst a year of upheaval for Campbell Soup, whose $ 4.9 billion deal for the purchase of Snyder's -Lance was concluded at the end of the month Of March.
In May, the company said Denise Morrison would retire as Chief Executive Officer with immediate effect. Acting, Morrison was replaced by Keith McLoughlin, the former Electrolux home appliance manufacturer CEO, who has its North American headquarters in Charlotte. Campbell is always looking for a permanent replacement.
CFRA consumer goods analyst Joseph Agnese wrote Monday in a research report that Campbell's major shareholders, heirs to former president John Dorrance, owned or controlled 41 percent of Campbell's outstanding shares in September. 2017..
"We expect more mergers and acquisitions in the packaged food sector, as larger companies benefit from the scale of distribution and efficiency," said Agnese.
It is unclear what effect a sale of Campbell would have on Snyder's employees in Charlotte. The company employs about 900 people in its South Boulevard plant.
Snyder's-Lance is the result of the 2010 merger of Snyder & # 39; s Hannover and Lance Packing Company, based in Pennsylvania, which began when Philip Lance began selling peanut bags on the streets from Charlotte in 1913. The portfolio of Snyder's-Lance has risen Over the years, it has added more 'better for you' snacks, while the company has acquired brands such as the late biochip maker July 2014 and the maker of baked snacks Baptista's Bakery that same month.
Snyder & # 39; s-Lance is now part of the new Campbell Campbell Snacks unit, in association with the Pepperidge Farm Cookie brand.
Campbell Soup shares closed up 9.4% to $ 42.23 on Monday.
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