(Reuters) - Snack foods company Snyder’s-Lance Inc LNCE.O will buy Pretzel Crisps maker Snack Factory for $340 million in an all-cash deal to enter the deli-bakery section of grocery stores that gets more traffic.
Snyder’s-Lance said it expects the deal to add about 2 cents to its earnings, excluding transaction related costs, in 2012 and 10 cents in 2013.
The company, which expects to close the transaction early in the fourth quarter, also expects to add about $160 million to its estimated 2013 net revenues.
Snack Factory’s Pretzel Crisps are exceptionally thin crackers known for their innovative flavors.
Princeton, New Jersey-based Snack Factory was founded in 2004 by Sara and Warren Wilson, who held the patent for making the first flat pretzel-shaped cracker under the Pretzel Crisps brand.
Snyder’s-Lance was advised by Edgeview Partners in the transaction.
Charlotte, North Carolina-based Snyder’s-Lance shares closed at $22.5 on the Nasdaq on Wednesday.
Reporting by Juhi Arora in Bangalore; Editing by Joyjeet Das