North Carolina Nabs, meet Pennsylvania pretzels.
Charlotte-based Lance, the maker of sandwich crackers known in the Southeast as "Nabs," on Thursday agreed to a merger with Snyder's of Hanover, the iconic pretzel maker.
The union will form Snyder's-Lance, which will keep its headquarters in Charlotte. The companies hope that by joining forces, they'll be able to boost sales and cut costs.
Snyder’s-Lance will benefit from a wide selection of snack food choices and national distribution, said David Singer, president and CEO of Lance.
Singer will become CEO of the combined company. The deal, which needs shareholder and regulatory approval, is expected to close in the fall.
Executives projected combined net sales of $1.6 billion for the new company, with operating earnings of approximately $170 million. Officials said the deal would produce $30 million in annualized “synergies.”
Lance, founded in 1913, also makes Cape Cod potato chips, Archway cookies and other products. Privately owned Snyder's, which also makes tortilla chips and nuts, traces its roots to 1909.
Lance shares jumped $5.69 to $21.69 today, but are still down 18 percent this year.
Read the full Charlotte Observer story on the deal here.