From the Wires
Lance, Inc. Announces Successful Bid to Purchase Assets of Archway Cookies LLC
Dec. 3, 2008 07:34 PM
CHARLOTTE, N.C., Dec. 3 /PRNewswire-FirstCall/ -- Lance, Inc.
(Nasdaq: LNCE) today announced that the U.S. Bankruptcy Court for the District
of Delaware has approved Lance's bid to purchase substantially all of the
assets of snack food company Archway Cookies LLC ("Archway"). Under the terms
of the Asset Purchase Agreement, Lance will acquire substantially all of the
assets of Archway for approximately $30 million. The transaction is expected
to close no later than December 15, 2008. Lance will use available liquidity
under its current credit facilities to fund the acquisition.
"We're excited about this acquisition," commented David V. Singer,
President and Chief Executive Officer of Lance, Inc. "Archway was founded in
the 1930s, and has built solid market share in its niche of soft, home-style
cookies. Archway is an excellent addition to our growing portfolio of
consumer preferred niche brands. We are looking forward to reopening the
Ashland, Ohio production facility, where we intend to produce Archway cookies.
This facility will also provide the capacity to support growth in our existing
business and capabilities that will broaden the products we can offer our
Private Brands customers, thus supporting our growth goals for our non-branded
business."
"We are very pleased with Lance, Inc.'s purchase of Archway Cookies, a
transaction that means putting people back to work in Ohio," said Lieutenant
Governor Lee Fisher, who also serves as Director of the Ohio Department of
Development. "We look forward to working together on this successful
collaboration and doing everything we can to help Lance, Inc. prosper in
Ohio."
About Lance, Inc.
Lance, Inc., headquartered in Charlotte, NC, manufactures and markets
snack foods throughout much of the United States and other parts of North
America. The Company's products include sandwich crackers and cookies, potato
chips, crackers, cookies, other snacks, sugar wafers, nuts, restaurant style
crackers and candy. Lance has manufacturing facilities in North Carolina,
Iowa, Georgia, Massachusetts, Texas, Florida, Arkansas and Ontario, Canada.
Products are sold under the Lance, Cape Cod and Tom's brand names along with a
number of private label and third party brands. The Company's products are
distributed through a direct-store-delivery system of approximately 1,400
sales routes, a network of independent distributors and direct shipments to
customer locations. Products are distributed widely through grocery and mass
merchant stores, convenience stores, food service outlets and other channels.
This news release contains statements which may be forward looking within
the meaning of applicable securities laws. The statements may include
projections regarding future earnings and results which are based upon the
Company's current expectations and assumptions, which are subject to a number
of risks and uncertainties. Factors that could cause actual results to
differ, including price competition and industry consolidation, increases in
prices or availability of ingredients, product price increase impact on total
revenue, risks from large customers, changes in consumer preferences,
implementation of a new information system, product recalls or safety
concerns, food industry and regulatory factors, acquisition and divestiture
risks, ability to execute strategic initiatives, interest rate, foreign
exchange rate risk, credit risks and natural disasters or catastrophic events
are discussed in the Company's most recent Forms 10-K and 10-Q filed with the
Securities and Exchange Commission.
SOURCE Lance, Inc.
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